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.
Template for Shareholder 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
2.2. 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.
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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.