Can you write your own shareholders agreement?

We believe that it is quite possible to draw it yourself, provided that you use a good template as a basis (such as our own). The difficulty in drawing an agreement is not the legal wording but in considering the issues that the shareholders will face, and deciding what should happen in each scenario.

What should be included in a shareholder agreement?

What Should You Include In Your Shareholders’ Agreement?

Decision Making.
Pre-Emptive Right.
Right of First Refusal.
Tag Along Right.
Drag-Along Right.
Purchase Option.
Shotgun Provision.
Confidentiality, Non-Competition and Non-Solicitation.

How do you create a shareholder agreement?

What to Think about When You Begin Writing a Shareholder Agreement.
Name Your Shareholders.
Specify the Responsibilities of Shareholders.
The Voting Rights of Your Shareholders.
Decisions Your Corporation Might Face.
Changing the Original Shareholder Agreement.
Determine How Stock can be Sold or Transferred.

How much does it cost to draft a shareholders agreement?

If your company is young, it may not be easy to come up with a few thousand dollars to pay a lawyer to draft a shareholder agreement. Even simple agreements can cost $1,000 to $2,000, while more complex contracts can even go up to $10,000.

How do you terminate a shareholders agreement?

How is a shareholders’ agreement terminated?

Breach of the agreement in certain circumstances by a party;
Expiration of a fixed term;
The occurrence of an event that indicates either the success or failure of the venture;
A party ceasing for any reason to be a shareholder in the joint venture company;

Do you need a shareholders agreement?

There is no legal requirement for a limited company to have a Shareholders Agreement, but I strongly recommend every limited company to have one, even if it is just you and your spouse (and perhaps more so!) A Shareholders Agreement governs and regulates the relationship between shareholders.