What's included with this Shareholders' Agreement?
- One-page Prep Sheet – outlines the info you’ll need to create your agreement
- Simple Shareholders’ Agreement - customised to your business, generated by answering straightforward questions
- Video Guides – short, plain language explainers to help you understand key concepts such as pre-emptive and drag and tag along rights
- What’s Next Guide – covers how to sign your agreement, create a share register and handle key changes with your company (like transferring shares)
- Template Share Register - record share ownership and stay compliant with the Companies Act 1993
Watch our short video on the key issues covered in our Shareholders’ Agreement.
Why your business needs a Shareholders' Agreement
Any company with more than one shareholder should have a Shareholders’ Agreement. It sets out the rules between shareholders and helps prevent future disputes. Examples of what it covers:
- Whether shareholders have to offer their shares to the other shareholders before they sell them to someone else
- What decisions need approval from all the shareholders (or 75% of shareholders)
- How to bring in a new shareholder/investor
- What happens if a shareholder dies
How is this customised Shareholders' Agreement different from a Shareholders' Agreement template?
After you purchase our Shareholders’ Agreement you answer a series of simple questions. We have videos and simple notes explaining the concepts you need to understand (like pre-emptive rights) to answer. Our tech takes your answers and creates a customised agreement for your business, based on our template agreement. When you use a template, you must determine which parts to include/delete for your business, which can be a complicated and difficult process.
Who isn't this Shareholders' Agreement for?
Our Shareholders’ Agreement is not designed for complex or unusual shareholding arrangements. It assumes all founder shares are fully vested (ie, there are no conditions on the shareholders’ ownership of their shares), all shares are 'ordinary' shares (not preference or redeemable shares). It doesn’t include rights to buy back unvested shares (or a vesting schedule). Further customisation of the agreement will be needed to address more complicated shareholding arrangements.
This product doesn’t include our Constitution. If you need a Constitution see our Shareholders’ Agreement and Constitution bundle. A Shareholders’ Agreement sets out the rules between shareholders and a constitution allows the company to do things it otherwise can’t, like insure its directors. It’s a good idea to have both. If you already have a Constitution, make sure it aligns with your Shareholders’ Agreement.
What if I need help?
Shareholders’ Agreements contain some important matters. If anything is unclear or you have any questions, feel free to contact us at hello@onyourterms.co.nz.
If you need further customisation of your Shareholders’ Agreement (as described above) our legal partner, Luminate Legal, can provide legal advice for a fixed price.
Other helpful information:
- Check out our blogs: How to transfer shares in a New Zealand company, Why Business Prenups (aka Shareholders’ Agreements) are Essential! Your Top 10 Questions on Shareholders’ Agreements Answered and Is my New Zealand business ready for investors?
- Other helpful documents: Term Sheet for Shareholders’ Agreement, Shareholders Agreement and Constitution Bundle; Company Constitution, Term Sheet for Sale and Purchase of Shares (one minority shareholding), Agreement for Sale and Purchase of Shares (one minority shareholding), Transfer of Company Shares and Approvals Bundle
- Check out our FAQs here
If you’re unsure whether this Shareholders' Agreement is what you need, reach out to us at hello@onyourterms.co.nz – we’re happy to help!
If this product is not fit for your purposes, let us know within 10 days of purchase and we'll arrange a refund.
Disclaimer: On Your Terms was created to provide fast, easy and affordable access to legal information and documentation. We are not a law firm and do not provide legal advice. The information and documents we provide are of a general nature, designed for common situations, and may not be suitable for your needs or circumstances.