Overview
A shareholder agreement regulates the relations between some or all of the shareholders of a company. It can also supplement the company constitution in regulating the business and affairs of a company.
Shareholder agreements are particularly important for small-and-medium-enterprises and start-ups, spelling out specific legal rights and providing enhanced protection for founders and investors investing time and money into the business.
Without a shareholder agreement in place, a thriving business may fall victim to deadlocks and disputes between company shareholders.
What is Included in the Template for Shareholder Agreement?
- Instructions on how you can use the template
- Interpretation of terms
- The business and shareholding of the company
- Share capital and rights
- Restriction on transfer of shares
- Compulsory purchases of shares
- Description of board of directors and management functions
- Matters requiring board and shareholder approval
- Access to company records
- Confidential information
- Non-compete clause
- Basis of termination of agreement
The following excerpts are taken from our shareholder agreement template (which you can purchase at the link below):
BUSINESS OF THE COMPANY
2.1. Unless and until all Shareholders agree otherwise, the business of the Company shall be restricted to:
2.1.1. _______________________________________________________; and
2.1.2. _______________________________________________________.
2.2. Every Shareholder undertakes to promote and develop the business of the Company to the best of his abilities.
Need a template for a shareholder agreement? You can get one here.
(Use the discount code shown when you enter your email address below)
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For a guide to shareholder agreements in Singapore, click here.
If you need help customising your shareholder agreement, feel free to get in touch with one of our corporate lawyers.
