Are you having trouble creating or designing your company's Shareholders' Agreement? Then, why don't you look at our professionally designed Agreement Templates to help you save time! We offer you professionally written templates for a professional just like you. Enjoy a high-quality plus 100% customizable templates made especially just for you! Here in, you have nothing to worry about because with just one click, you can easily download your chosen template and use it in your business endeavors plus our templates are available in sizes A3, A4, and US regular. What are you waiting for? Grab this opportunity now!

How to Write a Simple Shareholder Agreement?

A shareholder agreement or also called as the stockholders’ agreement is a written contract among the company's shareholders. The purpose behind the contract is to be certain that all the shareholders are treated equally and at the same time, their certain rights will be protected. Another significant objective of having a shareholders' agreement in your company is to outline each and everyone's role, task, and obligations. This written legal agreement is very important plus it offers a great help, especially when the corporation only has a limited number of active shareholders. According to, it is stated that there are 43% of self-employed business owners carried on business through a corporation.

shareholder agreement template

A simple shareholder agreement plays an important role in your company. This will create a huge impact on how decisions are made in the corporation. Always remember that when writing an agreement it must be detailed, it will also describe how you will run the business, how a dilemma must be managed and must state or clarify the responsibilities and privileges of every shareholder.

1. Identify your Shareholders

A shareholder agreement is also called a business agreement so, therefore, it must identify the legal names of every shareholder, their recent address, and lastly the phone number of every shareholder. Aside from that, you must also select a batch of officers and nominate someone who is going to be the managing shareholder.

2. State the Responsibilities of the Shareholders

The main purpose of having a well-written agreement is to avoid arguments between your shareholders. That is why you must state the responsibilities of everybody and at the same time, you must set the rules and regulations to avoid conflicts. This agreement must be strict regarding the actions of any shareholder that can take the name of the corporation so that whenever an issue arises, you will know how to handle the problem by determining the steps stated in your sample agreement.

3. Legal Obligations of Each Party in the Agreement

Aside from stating the responsibilities in your shareholders' agreement, you must also discuss the obligations of each party involved. You must state in your agreement the legal obligations of every individual who signs the contract agreement.

4. The Proper Distribution of Shares

Dividing the shares in your corporation is an important part that is why you must state it in your exclusive agreement. Remember that you must divide shares fairly among all the shareholders to avoid misunderstanding between them.

5. Develop the Exit Strategy

If you want your shareholders' agreement to be successful then you must develop a proper exit strategy. An exit strategy is very essential in creating an agreement and it will also determine what will happen next in the business that you want to render. Always keep in mind that the shareholders' arrangement is one of the heart and soul of your business so when you write your shareholders' agreement badly, then it will cause the individuals to lose their interest in the business.

Read More