Australia Shareholder Agreement
Set out how the shares of an Australian corporation are to be transferred or sold under this customizable Australia Shareholder Agreement.
- 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.
- The procedure for avoiding deadlock in votes is set out.
- The template also includes non-competition and confidentiality clauses.
Every corporation with more than one shareholder should have a Shareholder Agreement in place. Download this template which can be used in any Australian state or territory.