Shareholders' Agreement Services

Although the Corporations Act 2001 sets out Replaceable Rules, which at first glance may seem sufficient for protecting shareholders’ interests, these rules are quite general and may not be adequate for your particular situation. 

When incorporating a new company, it is important that the intending shareholders enter into a shareholders’ agreement that sets out how the business of the company will be run and the relationship of the shareholders among themselves.

Our business lawyers at Denning Legal have a combined experience of over 20 years’ experience in preparing shareholders’ agreements. We also have vast experience in dealing with shareholders’ disputes and we apply our expertise in this area in helping clients resolve disputes, and avoid common pitfalls that lead to litigation. 

 Why do I need a shareholders’ agreement?

A shareholders’ agreement allows you to customise the rules on key issues such as: 

• Funding of the business 
• Distribution of dividends 
• Nomination of directors to the board 
• Frequency of shareholders’ and directors’ meetings 
• Resolution of deadlocks 
• Sale or issuance of new shares to third parties 
• Method of dispute resolution, where a dispute arises between shareholders 

From our experience, ironing out these issues before incorporating the company helps the shareholders to clearly understand their rights and obligations, ensures that the company is run smoothly, and significantly reduces the chances of a dispute arising between the shareholders later. In the event that a dispute does arise later on, having a shareholders’ agreement in place makes it more likely that the dispute will be resolved amicably. 

Our approach

We understand that no two businesses are the same, even within the same industry. Thus, our first step is to understand your business and identify the issues that are important to you and the other shareholders. This will help us prepare a shareholders’ agreement tailor-made for your company that adequately addresses the peculiarities of your situation. We deliver our services as speedily as possible, and we maintain open communications with our clients at every stage. 

Our services 

We can assist you with: 

• Drafting a shareholders’ agreement 
• Reviewing a draft shareholders’ agreement if you have already been issued one by another shareholder 
• Entering into negotiations with the other shareholders on your behalf 
• Amending shareholders’ agreements 

Our dispute resolution team can also represent you in litigation arising from an existing shareholders’ agreement.