Shareholder Agreements – Key Considerations

Starting a business with a partner/s is exciting – but without the right groundwork, it can also be risky. A shareholder agreement is one of the most important steps you can take to protect your business, your investment, and your working relationship.

Set Clear Roles and Responsibilities

Disputes often arise when expectations aren’t aligned. A shareholder agreement should outline who is responsible for what in the business, ensuring everyone is on the same page from the start.

Define How Decisions Are Made

From day-to-day management to big strategic moves, decision-making needs to be clear. The agreement can set out how major calls are made, what requires unanimous consent, and how voting works.

Plan for Exits and Share Transfers

What happens if a shareholder wants to sell their shares, retire, or leave the business? A well-drafted agreement includes an exit strategy, with clear rules around pre-emptive rights, valuation, and buyouts.

Resolve Disputes Efficiently

Even with the best planning, disagreements can happen. Including a dispute resolution process in the agreement provides a pathway to handle conflict quickly and cost-effectively – before it escalates.

Protect Your Business from Day One

Whether you’re launching a new venture or updating existing arrangements, a shareholder agreement provides certainty, reduces the risk of disputes, and gives your business a stronger foundation.

At Argon Law, we work with business owners to draft and update shareholder agreements tailored to their unique needs and goals.

Thinking about going into business with a partner? Contact us today to ensure your shareholder agreement protects you and your future.