Share Agreement Sample
2023-05-13
If you`re looking to start a business with one or more partners, it`s crucial to have a share agreement in place. A share agreement, also known as a shareholders` agreement, is a legal document that spells out the rights and responsibilities of each shareholder in a business. This document ensures that everyone is on the same page and that there is clear communication when it comes to how the business will be run.
However, creating a share agreement from scratch can be daunting. That is why we have put together a sample share agreement to help guide you through the process. Keep in mind that this sample is not meant to be a one-size-fits-all solution; it should be tailored to your specific business needs and the preferences of your shareholders.
Introduction
The introduction section of the share agreement should identify the parties involved in the agreement, the date of the agreement, and a brief statement about the purpose of the agreement.
Ownership and Shares
This section of the agreement should outline the ownership and distribution of shares between the shareholders. It should include the number of shares each shareholder owns, how those shares were obtained, and the voting rights that come with those shares.
Responsibilities and Duties
This section should outline the responsibilities and duties of each shareholder in the business. This section should also include specific information about how decisions are made and how meetings will be conducted.
Transfer of Shares
The transfer of shares is an important topic that should be covered in the share agreement. This section should cover the process for transferring shares to other shareholders or to a third party.
Rights and Obligations
This section should outline the rights and obligations of each shareholder in the business. This section should cover topics such as the right to receive dividends, the right to inspect financial records, and the obligation to contribute additional capital to the business if it becomes necessary.
Confidentiality and Non-Competition
This section should outline any confidentiality agreements or non-competition agreements that the shareholders are required to abide by. This section should also include information about how confidential information will be handled.
Dispute Resolution
Finally, the share agreement should include a section on dispute resolution. This section should outline the process for resolving disputes between shareholders. This section should also include information about whether mediation or arbitration will be used to resolve disputes.
Conclusion
Creating a share agreement is an essential step in starting a business. It provides a framework for how the business will be run, outlines the rights and responsibilities of each shareholder, and ensures that everyone is on the same page. By using our sample share agreement as a starting point, you can create a customized document that meets the unique needs of your business and its shareholders.