Shareholders Agreements

A shareholders agreement (and related co-ownership agreements) provides a clear framework for how a business or investment is owned, managed and protected when there is more than one owner. Whether ownership is held through a company, unit trust, partnership or another structure, clear agreements help co-owners navigate change, manage uncertainty, and reduce the risk of disputes as circumstances evolve.

We help:

Establish clear expectations between co-owners from the outset
Provide a practical framework for managing growth, change, and unexpected events
Reduce the risk of future disputes through considered planning

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We Understand What You Are Going Through

Being in business or holding investments with others often involves balancing different priorities, levels of involvement, and long-term goals. Even where relationships start well, uncertainty can arise as circumstances change, the business grows, or personal situations evolve.

You may be thinking about how to protect your investment, maintain working relationships, or plan for what happens if someone wants to step away. These are important considerations that are often easier to address before challenges arise.

We help you work through these issues in a calm and practical way, so you can move forward knowing there is a clear framework in place to support the business and its owners.

Our Services Include

Preparing tailored co-ownership agreements, including shareholder agreements, partnership agreements and unit holder agreements
Defining rights, responsibilities, and decision-making processes between co-owners
Addressing changes in ownership, control, or involvement over time
Putting clear mechanisms in place to manage disagreements and unexpected events
Reviewing and updating existing co-ownership agreements as circumstances evolve

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Our Difference

Accountability & Expertise

Every matter we handle comes with full accountability. You’ll deal directly with an expert – every time, no exceptions.

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Understanding your unique circumstances and goals - so our advice is practical, personal, and never given in a vacuum.

Transparency & Communication

We speak your language. That means plain, clear advice - what’s happening, why it matters, and what comes next.

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Our Process

Book Meeting
Fill in contact form or call our office to book an initial consult. You can choose between in-person or video conference.
Get Advice 
You’ll discuss your situation in depth with a senior lawyer. This includes exploring your requirements, goals, and desired outcomes. You’ll walk away from this meeting with a clear understanding of the next steps.
Achieve Outcomes 
Our legal team will work tirelessly to achieve your desired objectives. We work hard, communicate regularly, and pride ourselves on delivering results.

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You don’t have to figure this out alone. Book an initial consult with our expert legal team and get clear answers about your situation.

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Andrew Henshaw

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Award Winning Law Firm – Top Specialist Firm & Top Boutique Firm (Australasian Lawyer)

Our usual approach is to:

provide you with a clear and transparent fee quote;
get context regarding your business, the co-owners and your objectives;
have a workshop meeting with you to explore your preferences in more detail;
guide you through our draft co-ownership agreement; and
refine the contract until you are comfortable with the terms.

We pride ourselves on adopting a pragmatic and sensitive approach during these discussions. Our wealth of experience enables us to deal with challenging issues in a delicate manner.

The Benefits of a Shareholder Agreement Lawyer

A robust shareholder agreement will safeguard investments, establish guidelines for company management and help prevent conflicts.

In other words, a well-structured shareholder agreement is a necessity for any business. It is not advisable to draft one without legal support. Read More

For example, when constructing an agreement, key issues that shareholders may easily overlook include:

Determining share valuation during an exit.
Establishing the terms of a dividend policy.
Outlining a clear process for resolving disputes among shareholders.

An experienced shareholder agreement lawyer will ensure that all the i's are dotted and the t's are crossed. Companies change, and their long-term strategy may shift. A shareholder agreement anticipates these changes.

Regardless of whether it's for an equal, majority or minority shareholding, a shareholder agreement should maintain clarity and balance in shareholder relationships. More comprehensively, a good shareholder agreement will cover the following:

Financial controls, borrowing limits, and access to up-to-date financial information.
Rules for issuing new shares, including pre-emption and preference share rights.
Director powers and restrictions.
Key veto rights for minority shareholders.
Exit strategies for shareholders, with 'good leaver' and 'bad leaver' terms and share valuation rules.
Drag-along and tag-along rights for business sales.
Procedures for handling shares in cases of death, illness, bankruptcy or criminal offences.
Dispute resolution mechanisms, such as buyout options for 50:50 shareholders.
Clear dividend policies.
Restrictive covenants

In summary, a shareholder agreement is not an easy document to compile alone. However, an experienced lawyer for shareholder agreement will assess your business needs. They can draft a shareholder agreement that protects the interests of all parties.

Find an Experienced Lawyer for a Shareholder Agreement

Choose an experienced firm

There is no substitute for expertise. Does the firm specialise in shareholder agreements (and commercial matters, in general)? Are there informative resources on the website?

These, and client reviews, are key indicators of the firms' experience.

Opt for a transparent fee structure

Ensure the legal firm provides a clear and transparent fee structure so you understand the costs involved and can assess whether they align with your budget. It is essential to understand the costs involved at each major stage of the process, with no hidden fees.

Accreditation and Testimonials

Professional accreditations (such as from the Law Society) can provide peace of mind that the lawyers work according to best industry practices. From another perspective, client testimonials validate the service and the outcome of working with the firm.

Velocity Legal is proud to have earned customer acclaim. Our reviews praise our 'exceptional legal assistance', 'knowledgeable and professional' approach and 'sound advice and clear representation on critical matters'. Find out how Velocity Legal can help you quickly and clearly draft a shareholder agreement.

Learn how Velocity Legal can Assist With your Shareholder Agreement

Velocity Legal specialises in commercial law, including shareholders' agreements and unitholder agreements. Let us assist you in ensuring your rights and interests are protected through tailored solutions for your business needs.

To find out how we can support and streamline your shareholder agreement process, book your free consultation. Read Less

Frequently Asked Questions

Why do businesses and investors put co-ownership agreements in place?

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Shareholders and other co-ownership agreements are used to create clarity and certainty between owners as a business or investment operates and evolves. Documenting expectations helps keep owners aligned and provides a clear reference point when decisions become more complex.

Are co-ownership agreements only useful if there is a dispute?

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No. These agreements are often put in place when relationships are positive, specifically to help prevent misunderstandings later. They are commonly used as a planning tool rather than a response to conflict.

Do all co-owners need to be actively involved?

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Not necessarily. Co-ownership agreements can accommodate different levels of involvement and responsibility, and help ensure everyone understands how decisions are made regardless of day-to-day participation.

When should a co-ownership agreement be reviewed or updated?

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Co-ownership agreements are often reviewed when there are changes in ownership, growth in the business, or shifts in direction. Periodic reviews help ensure the agreement continues to reflect how the arrangement actually operates.

What happens if there is no co-ownership agreement in place?

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Without a co-ownership agreement, the rights and obligations of owners are often governed by default rules, such as a company’s constitution, if there is one, trust documentation, and applicable legislation. These default arrangements may not reflect how the owners intend the business or investment to operate, which can create uncertainty as circumstances change.