Introduction
This shareholders agreement template is designed for private companies with two or more shareholders who wish to regulate the ownership, control and management of the company.
The agreement sets out the rights and obligations of shareholders in relation to the operation of the business, appointment of directors, issue and transfer of shares, dividends, confidentiality and dispute situations affecting the company.
It also includes provisions dealing with first right of refusal, buy back events, drag along and tag along rights, making it a practical starting point for documenting the relationship between shareholders in a private company.
This precedent is suitable for Australian proprietary companies and is fully editable in Microsoft Word format.
Professionally Drafted Legal Precedent
Prepared by Australian legal professionals, this precedent provides a practical framework for use with the Contract for Sale and Purchase of Land 2026.
The document is fully editable in Microsoft Word and ready for immediate use.
At A Glance
What This Document Covers
• Shareholder rights and obligations in a private company
• Control, management and operation of the business
• Appointment of directors and board decision-making
• Share ownership, issue and transfer arrangements
What This Document Covers
• Shareholder rights and obligations in a private company
• Control, management and operation of the business
• Appointment of directors and board decision-making
• Share ownership, issue and transfer arrangements
Key Clauses Included
• First right of refusal on share sales
• Buy back events
• Drag along and tag along rights
• Confidentiality and conflict of interest provisions
Download Details
• Lawyer-drafted shareholders agreement precedent
• Suitable for Australian proprietary companies
• Fully editable Microsoft Word document
• Instant download available immediately after purchase
Drafted by Legal Professionals
Our precedents are prepared by Australian legal practitioners and reflect commonly used legal drafting standards.
Practical and Easy to Use
Each template provides a structured framework that can be adapted to suit the specific transaction or matter.
Instant Access
Download immediately after purchase and edit the document in Microsoft Word to suit your requirements.
Related Precedents
Frequently Asked Questions
What is a shareholders agreement?
A shareholders agreement is a contract between the shareholders of a company that regulates their rights and obligations in relation to ownership, control and management of the company.
It commonly deals with matters such as decision-making, appointment of directors, transfer of shares, dividends and dispute situations.
Why should shareholders have a written agreement?
A written shareholders agreement helps avoid disputes by clearly setting out how the company will be managed, how decisions are made and what happens if a shareholder wants to sell their shares or leave the business.
What is the difference between a constitution and a shareholders agreement?
A company constitution governs the internal rules of the company, while a shareholders agreement is a private contract between the shareholders dealing with their specific rights and obligations.
A shareholders agreement often includes more detailed commercial arrangements than the constitution.
Can a shareholders agreement restrict the sale of shares?
Yes. Shareholders agreements commonly include restrictions on share transfers, such as first right of refusal provisions, drag along rights and tag along rights.
These clauses help control who may become a shareholder in the company.
What are drag along and tag along rights?
Drag along rights allow majority shareholders to require minority shareholders to sell their shares in certain circumstances. Tag along rights allow minority shareholders to participate in a sale by majority shareholders on the same terms.
Is a shareholders agreement suitable for a small company?
Yes. A shareholders agreement is often particularly useful for small private companies because it helps clarify governance, shareholding rights and dispute procedures at an early stage.
Can this agreement be used for two shareholders?
Yes. This precedent is suitable as a basic shareholders agreement for companies with two shareholders and can be adapted for companies with additional shareholders if required.
Also Known As
Shareholders agreements may also be referred to as:
• Shareholder Agreement
• Company Shareholders Agreement
• Business Shareholders Agreement
• Shareholders Deed
These agreements regulate the relationship between shareholders in a private company, including management, governance and share transfer rights.
Also Known As
Shareholders agreements may also be referred to as:
• Shareholder Agreement
• Company Shareholders Agreement
• Business Shareholders Agreement
• Shareholders Deed
These agreements regulate the relationship between shareholders in a private company, including management, governance and share transfer rights.
Used by lawyers, businesses and commercial operators across Australia.
Download This Precedent
Instant download. Fully editable Microsoft Word format. Includes practical drafting guidance.