Prepare a Shareholder Agreement for an Australian corporation with this ready-made template form.

The agreement is between the corporation and the holders of a particular class of shares in the corporation, and governs how the corporation's shares are to be transferred, sold or otherwise disposed of. Provisions of the Agreement include:

• Each shareholder has a right of first refusal to purchase any shares being disposed of by the other shareholder(s) before the shares can be offered to third parties.


• Shareholders not wishing to exercise their right of first refusal can transfer a pro rata share of the offered securities to the other remaining shareholders.


• The shareholders also have a right of first refusal to purchase new securities being issued by the corporation.


• If a shareholder is in default (as defined in the agreement), the other shareholders have a call option; in other words, they have the option to purchase the defaulting shareholder's shares at fair market value.


• Procedure for avoiding deadlock in votes.


• Includes non-competition and confidentiality clauses.

This Australian Shareholder Agreement is provided in MS Word format, and can be easily edited to fit your circumstances.