Governance and decision-making
The agreement may allocate voting rights, appointment rights, information rights and matters requiring a qualified majority or unanimity.
Funding and distributions
The parties should agree how the business will be funded, what happens if a shareholder does not contribute and how additional investment and distributions are handled.
Transfers and exit
Pre-emption, tag-along, drag-along, buy-out and exit mechanisms reduce uncertainty when the shareholders’ interests change.
Deadlock and disputes
Where votes are evenly split or decisions are blocked, escalation, mediation, buy-out or another clear deadlock mechanism is important.
Related competence area
Business law →This article provides general information only and is not individual legal advice. The appropriate legal route depends on the facts and the law applicable at the relevant time.