A shareholder agreement sets out how owners will work together, make decisions, and resolve disagreements. It is far easier to agree these terms while relationships are strong.
01. Decision-Making and Control
Define which decisions require unanimous or majority approval and how the board will be appointed.
02. Share Transfers and Exits
Pre-emption rights, drag-along and tag-along provisions, and valuation methods help manage changes in ownership.
03. Deadlock and Disputes
A clear mechanism for resolving deadlock protects the business from paralysis when owners disagree.
Conclusion
A well-drafted shareholder agreement gives owners certainty and gives the business stability as it grows.
About the Author
Daniel Carter
Partner, Corporate
Daniel works with founders, investors, and established businesses on transactions, governance, and corporate structuring.
This article is provided for general information only and does not constitute legal advice. Please speak with a qualified lawyer about your specific circumstances.
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