Shareholders Agreement | Shareholder Agreement Template

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Shareholders Agreement

When starting a company, you, together with your fellow shareholders, are the best of friends for now - a scenario which you assume will continue indefinitely. The unfortunate reality, however, is that most businesses fail due to a fall out between the shareholders. Hopefully, this does not happen to your company. In the unlikely event that it does, our Shareholders Agreement acts as a safeguard against potential fall outs between shareholders, as well as regulating certain governing aspects of your company.

Included in the Shareholders Agreement

The document contains all the basic aspects of a Shareholders Agreement including:

  • The share capital of the Company;
  • The names of shareholders, coupled with the number of shares issued to each;
  • Provisions pertaining to shareholder loans;
  • The dividend policy of the Company;
  • Pre-emptive rights clauses, in that shareholders must first offer shares they wish to sell to other shareholders, before offering them to outsiders;
  • The Company’s dividend policy;
  • The process followed in order to value shares of the company;
  • Drag Along and Tag Along rights;
  • Dispute resolution procedures;
  • Provisions pertaining to confidentiality;
  • How new shareholders will be allotted shares in the Company;
  • How director remuneration is determined;
  • Dispute resolution procedures;
  • Instances required of a forced sale of shares if a shareholder becomes incompetent or breaches the Shareholders Agreement;
  • Provisions pertaining to confidentiality.

How does it work?

When you start the questionnaire, you will be guided through the questions with the helping hand of explanations and additional information. Based on your answers, the Shareholders Agreement will be tailor-made by our system. If you log in or create an account, you can also save the progress of the questionnaire and come back later.


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Barter McKellar Law

This document is supplied by Barter McKellar Law.

Barter McKellar is a boutique law firm which offers bespoke legal solutions that make legal, personal and business sense. We practice law because we thrive off solving legal problems (simple or complex) and providing our clients with peace of mind. No matter what your legal needs are, we are able to assist you as a trusted legal partner. We pride ourselves on giving our clients the best legal advice and legal solutions that make practical and commercial sense. We give you the tools and guidance that you need to help you and your business grow and our services and fees are tailored to suit your specific needs