Shareholders' agreement

Professional investors
6 reviews
€79.00
drsWe can check your edited document. Find out more
This document includes terms that a professional investor such as a business angel or venture capitalist would require.It also considers the provisions of minority shareholders - likely to be the founders and early supporters.Additional terms in this document include: drag along and tag along rights, key man insurance, rights of preference, rights of first offer, and increased reporting requirements.
Compliant
Compliant with the latest law
Document propertied
Document properties
  • Length:27 pages (9300 words)
  • Available in:
    MsWordMicrosoft Word DOCXApple pagesApple PagesRTFRTF
Guaranteed
Backed by our watertight guarantee

If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.

Edit Document
Written in plain English

We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.

Notes
Guidance notes included

You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.

Email
Support from our legal team

We offer free support by email in respect of editing the document. You can also use our Document Review Service if you want to our legal team to check that the document will do as you intend.

Update
Up to date with the latest law

Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.

How our service works
Writing
Edit Your Document
Download your document & complete it at your own pace. Our guidance notes explain what to consider and how to edit.
Investigation
Upload for Legal Review
Let our legal team check that the document does what you intend.
Printing
Print, Date & Sign
Signing the document makes it legally binding.

About this document

This template is drawn specifically to cover the situation where an external investor introduces money. The transaction is likely to be a loan agreement, supported by a shareholding.

The smaller the proportion of shares, the more important this agreement becomes. It protects and empowers the investor in ways that are fair and that reflect the fact that he, she or it may not be involved in the day to day operation of the business. However, the option of board representation is provided.

This version is also suitable for a situation where the investor has a voting majority but prefers to stay away from day to day management. Other shareholders, who may include the company founders, are not prejudiced.

This agreement is:

  • suitable for private companies in any industry
  • with any number of shareholders
  • suitable for all stages of the business/investment lifecycle, whether the investor is providing seed capital, venture capital, expansion capital or a MBO
  • the company could be a start-up or established

The agreement is not affected by use of different classes of shares, the terms of any loan agreement, use of options, or other structure. Ideally, where a large investment is being made, this agreement would be drawn alongside the other legal documents, such as lending agreements that deal with the investment so that it is in place as soon as the transaction completes.

Note: It is important that the constitution of the company are in terms which permit and support this agreement.

Contents

There are specific provisions in this agreement that are not included in other Net Lawman shareholders’ agreements that a business angel or venture capitalist is likely to require. It considers minority shareholders such as company founders still working in the business

Examples are the inclusion of procedure to deal if deadlock occurs, increased reporting and information rights, drag along and tag along rights, and provisions to protect shareholders from dilution of their investment at subsequent financing rounds such as right of first offer.

Standard terms, such as those setting out responsibilities of the directors and the company to shareholders, are of course included.

In many areas, we give you complete alternative paragraphs and explain in the notes when each will be the most suitable for you.

The paragraphs in this document include:

  • Appointment of directors
  • Responsibility of directors
  • Proxy voting of shareholders at meetings
  • Company's obligations to the shareholders
  • Additional disclosure and access to information for the investor(s)
  • Assets introduced by shareholders
  • Intellectual property introduced by shareholders
  • Actions requiring shareholder consent
  • Deadlock
  • Transfers conditionally permitted
  • Assets and intellectual property introduced by the investor
  • Tag along right
  • Drag along right
  • Transfers on death or incapacity
  • Limitation of actions by former shareholder
  • Dividend policy and procedure
  • Continuing obligations of shareholders
  • Publicity
  • Conflict with the Articles of Association
  • Confidentiality
Reviews of this document
4.8 out of 5 stars
6 Reviews
5 star
(5)
4 star
(1)
3 star
(0)
2 star
(0)
1 star
(0)
Recent reviews
09 June 2020
Great easy to use document
John Voitin
Review of the Australian version
12 August 2019
The document has very clear wording, logical composition, is easy to navigate.
Valeriia Chupina
Review of the United Kingdom version
22 July 2019
This document was exactly what we were looking for. We have family interested in investing in our business and we wanted a professional legal document that we could change to suit our situation. We bought from you because the price was right and because it was a template, easy to follow and fill in. We would definitely recommend your services to others.
Wendy Bakewell
Review of the New Zealand version
Read All Reviews
© 2000 - 2023 Net Lawman Limited.
All rights reserved