Shareholders Agreement

A Shareholders Agreement allows you to clarify the relationship between shareholders of your company.

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Last updated October 23, 2025

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Suitable for Australia

Shareholders Agreement
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Frequently asked questions

Use this Shareholders Agreement if:

  • You would like to lay down the rules between the shareholders of your company.

What does the Shareholders Agreement cover?

  • Who can be a shareholder;
  • Who can serve on the board of directors;
  • What happens if one of the shareholders becomes impaired or dies;
  • What happens if a shareholders files for bankruptcy, resigns, retires or is fired;
  • Restrictions as to when a shareholder may transfer, sell or assign its shares to third parties;
  • The valuation of shares for company stock;
  • How much will be paid for the purchase of such shares;
  • Restraint provisions;
  • Dividend distributions & Shareholder salary payments; 
  • Shareholder mediation procedures; and
  • Exit strategy.

Other documents you may need:

Further information:

View Sample Shareholders Agreement

Shareholders Agreement
risk level indicator at Medium level

The Legal Risk Score of a Shareholders Agreement Template is Medium

Our legal team have marked this document as medium risk considering:

  • The document allows for significant control over company decisions by a limited number of shareholders, which might concentrate power and limit broader shareholder influence.
  • There are provisions that allow for the sale or transfer of shares under specific conditions which could lead to potential changes in ownership that might not align with all shareholders' interests.
  • The agreement binds parties to specific actions regarding the management and operational direction of the company, which could restrict flexibility in responding to future business challenges or opportunities.

Articles about Shareholders Agreement

Why your business needs a Shareholders Agreement
By Dominic Woolrych|May 25, 2015

Why your business needs a Shareholders Agreement

Learn about a shareholders agreement, what it includes and how it can be beneficial for your business.

When to Use a Shareholders' Agreement (2025 Update)
By Dominic Woolrych|Jan 7, 2025

When to Use a Shareholders' Agreement (2025 Update)

A Shareholders' Agreement protects both a company and its members by setting out the terms of ownership. Find out when to use one here.

Directors’ Roles in Shareholders Agreements
By Gopi Giri|Dec 4, 2025

Directors’ Roles in Shareholders Agreements

There's no one correct form of shareholders agreement. This raises the question, what should you include in your shareholders agreement? Find out here.

Quick Tips: Legal Documents For Business Founders
By Dominic Woolrych|Mar 19, 2015

Quick Tips: Legal Documents For Business Founders

Learn about the legal documents, including Shareholder's Agreement and Vesting Agreement, that you may need when starting a business.

Company Constitution vs Shareholders Agreement
By Shrishti Shah|Dec 1, 2025

Company Constitution vs Shareholders Agreement

A company constitution and shareholders agreement are both crucial documents when starting your company. Find out how they're different in this article.

Checklist For New Shareholders
By Joshua Cutrone|Oct 3, 2019

Checklist For New Shareholders

Just become a new shareholder in a business? Not sure exactly what shareholders rights and responsibilities are? Learn today about being a new shareholder!

Can Shareholders Liquidate a Company?
By Adam Watters|Apr 14, 2020

Can Shareholders Liquidate a Company?

Shareholders have an inherent interest in the performance of their company. But if the company is struggling, can shareholders liquidate the company?

How to Exit Your Shareholders' Agreement
By Joshua Cutrone|Dec 4, 2019

How to Exit Your Shareholders' Agreement

Are you looking to sell your shares in a company but don't know your exit route? Read on to learn how to exit your shareholders' agreement.

Explaining Good Leaver and Bad Leaver Provisions
By Daniel Fane|May 24, 2024

Explaining Good Leaver and Bad Leaver Provisions

Any strong Shareholders Agreement will include good and bad leaver provisions for departing shareholders. Find out more here.

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