{"id":37675,"date":"2023-10-20T14:51:37","date_gmt":"2023-10-20T14:51:37","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/what-are-the-key-elements-of-a-shareholder-agreement-startupsmart\/"},"modified":"2023-10-20T14:51:37","modified_gmt":"2023-10-20T14:51:37","slug":"what-are-the-key-elements-of-a-shareholder-agreement-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/what-are-the-key-elements-of-a-shareholder-agreement-startupsmart\/","title":{"rendered":"What are the key elements of a shareholder agreement? – StartupSmart"},"content":{"rendered":"
There are two key elements which should be covered in a shareholder agreement.<\/p>\n
<\/span> <\/p>\n \u00a0<\/p>\n The first element is entirely within your own hands \u2013 it should set out in writing all of the things which you and your fellow business owners and investors have agreed, so that there is no confusion down the track as to what the commitments (and lack of commitments) from each party are.<\/p>\n \u00a0<\/p>\n The second set of issues are those which are common to every shareholder agreement \u2013 although the details may vary from company to company.<\/p>\n Of these, the main three which you should focus on are:<\/p>\n \u00a0<\/p>\n Also, what happens if someone does not contribute their commitment? Can they be kicked out, or is their equity simply diluted?<\/p>\n<\/li>\n If someone wants to leave, can they get their money out, and how will the impact on the remaining investors be managed?<\/p>\n You might want to include a minimum time period before anyone is allowed to get their money out, and if they are allowed to sell, you need to consider whether they can sell to third parties or only to other investors.<\/p>\n If it is the latter, you may want to have “vendor finance” provisions \u2013 so that it does impose a large cash drain on the business by allowing for payment over time.<\/p>\n<\/li>\n There are two key elements which should be covered in a shareholder agreement. \u00a0 The first element is entirely within<\/p>\n","protected":false},"author":2,"featured_media":61862,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/37675"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=37675"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/37675\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/61862"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=37675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=37675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=37675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n