Additional Details

A Shareholder’s Agreement is like an insurance policy in contract form between shareholders to prepare for the unexpected. If something untoward happens, there is a process to follow and an agreement in writing to rely on.  It puts all the shareholders on the same page and outlines the mediation and/or arbitration process to handle any arising disputes.  Legally speaking, without the ability to rely on a signed Agreement, things can become very uncertain very quickly, which means if there is a disagreement or dispute between the shareholders, it can cost a lot in time, energy and legal expenses.

1. We will email you a list of questions that we will run through with you on our initial telephone call to obtain the information we need to prepare the Shareholder’s Agreement (the “Agreement”);

2. We will have a telephone call or Zoom with you (and your other shareholders) to obtain the information we need to prepare the first draft of the Agreement;

3. We will prepare and send you the first draft of the Agreement for the company for you and the other shareholders to consider;

4. We will answer your questions and receive your feedback in relation to the Agreement (either via one telephone call or email) within 30 days of sending you the first draft; and

5. Following this, we will complete one round of minor changes to the Agreement (if required and if instructions are received within 30 days of us sending you the first draft).

Frequently Asked Questions

If you are considering engaging You Legal to prepare a Shareholder’s Agreement, here’s what you need to know:

A Shareholder’s Agreement is like an insurance policy, it is a contract between each shareholder of your company. If something unexpected happens there is a process to follow and an agreement in writing to rely on. Legally speaking, without the ability to rely on a signed Agreement, things can become very uncertain, very quickly. It is important step to take to set up your business for success.

The Agreement will, among other things:

• Set out the process to be undertaken if one of the Shareholders needs to leave the business (including the process for how shares are to be transferred);

• Include the process of how decisions are to be made in the business;

• Set out the process for mediation and/or arbitration in the event a dispute arises;

• Include what a key decision is and what to do if there is a deadlock;

• Set out what is expected in relation to finance, future investment & how dividends are to be paid;

• If you and your fellow shareholders are restrained from starting a competing business if one of you leaves the business;

• What might happen in the event of unforeseen events; and

• Allows you and your fellow shareholders to discuss and agree on other important rules of play in your business.

This Online Solution is for up to 3 shareholders. If you purchase this Fast Track solution and have more than 3 shareholders, there will be an additional fee payable. Contact us and we can provide you with a fixed fee proposal suited to your circumstances.

This is because it does us take slightly longer working with the company if there are more shareholder voices around the table.

No, it’s not too late. You can invest in a Shareholder’s Agreement for your company and you as shareholders even if you are already ‘playing the game of business’. In fact, our view is its better late than never, because we have seen what happens when businesses do not invest in these Agreements. It’s not pretty when there is a dispute, we can tell you that for sure.

The above price is inclusive of the finalised Agreement, and the process of getting there. From providing us with the information, to making sure you understand it and making the changes you request, to getting your finalised Agreement. For more details on the exact process and what’s included, see the ‘Once you purchase this Agreement’ section above.

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