Standard Shareholders Agreement Nz

This Agreement is not intended for service undertakings in which shareholders operate in the undertaking, with emphasis on the return of regular income to those shareholders on the basis of their contribution to the operation, i.e. undertakings in which shareholders work as partners in a professional services undertaking. Our shareholder agreement model – service companies are a better starting point for this type of business. During the process of negotiating a shareholders` agreement, shareholders are obliged to discuss and try to clarify what will happen if a particular event occurs. During this process, the shareholders will meet very well and a very important part of the shareholders may realize that they can really work together. Not all relationships have been established to exist forever, and even the most stable relationship between shareholders can fluctuate. Problems can also arise unexpectedly, such as the death of a shareholder or the need for a shareholder to sell his shares. Planning these events in advance can help anticipate a dispute and save the parties involved some costs. This agreement deals with issues relating to the management of the company and the relations between shareholders (e.g.B. The right to appoint directors, matters requiring the agreement of directors appointed by investors, the provision of financial information, confidentiality rules, etc.).

Think about the need for a shareholders` agreement – in some cases, a shareholders` agreement is not necessary, as the essential requirements of the company can be included in the articles of association (for example.B. Preferential rights and tag along and drag-along rights). We also offer other versions of this agreement for certain situations, including cases where a person owns the majority of the equity and counts among the shareholders professional investors who need more complex exit rules. It is a simple shareholders` agreement for small to medium-sized enterprises in growth. This template is our full standard version that is suitable for most limited liability companies, regardless of the sector of the company or the number of shareholders. It could be introduced by a majority or minority shareholder when the company is set up or at a later date, for example. B in the event of a change of ownership or significant loan investment or when repaying a large loan investment. Unlike the incorporation of the company, a shareholder agreement is not registered with the Companies Office and therefore has a higher level of confidentiality. .

. .