Shareholders Agreement: Things to Consider | Bell Partners

Does your company have a Shareholders Agreement?

Have you ever considered what would happen to your company if you or your business partner became so ill that one of you could no longer work or, worse, died? Consider:

  • Would you still be paying dividends or making distributions of profit to that person or their estate even though he or she is not around?
  • If they left their spouse everything (including their shares in your company) in their will, would you want to be in business with his or her spouse?
  • Could they sell their shares in your company to a complete stranger, like a competitor?
  • How are the shares to be valued and over what period will the purchase payments be paid?
  • Is there an insurance policy to fund the payment in a lump sum?

You should not leave some of the most important and fundamental issues for your company to chance. These matters arise often, as do disputes regarding the sale of and exit from businesses and the day-to-day running of them. A Shareholders Agreement can cover these not uncommon scenarios and tailor the rights and obligations of the shareholders to fit your personal circumstances and your particular business to help avoid some of these potential problems for everyone’s ultimate benefit.   For more information, please call Michael Tzirtzilakis , Head of Commercial Law at Bell Partners Legal, on (02) 9249 7600 or email

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