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Shareholders agreement | Free template

Shareholders agreement between shareholders is a free template that can be used to in writing regulate rights and obligations between the shareholders in a small limited company.

There may be many conflicts between shareholders in smaller companies and also other problems that must be regulated in some way. If a small company becomes very successful, it can lead to the emergence of conflicts regarding the distribution of earnings because all shareholders may not have contributed equally. If one of the shareholders of a small company dies, you may experience frustration due to that an heir get the right to values that may have been built up thanks to a long period of work without pay.

A shareholders' agreement is established between a number of partners (shareholders) and must contain all points that are considered important to be regulated between partners. It can be difficult to understand the benefits of a shareholders' agreement when starting your first company with others but you will probably understand the benefits of such an agreement sooner or later.

This template for a shareholders' agreement between shareholders contain three paragraphs relating to the company covered by the agreement, the parties covered by the agreement and the limited company's business. The shareholders agreement provides then 14 paragraphs more relating to:

4. How the net asset value is calculated
5. How to yield value should be calculated
6. How the parties should relate to board
7. How a CEO should be appointed
8. How signatory shall be
9. Division of work, pay and benefits
10. How dividends can be paid
11. Provisions on competition and confidentiality
12. Provisions for company resources in relation to the parties
13. What happens if a party wants to sell his shares
14. What happens when a party dies or becomes bankrupt
15. Provisions on remedies for breach of contract
16. Time term for the shareholders agreement
17. Other

Shareholders agreement shall be signed by all parties and it is important that you read all the paragraphs in this template and adapt it to your own needs in terms of what and how you want to regulate the relationship between you as a shareholders.
Updated: 01/01/2015 | Created by

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