Draft of Shareholders Agreement

When starting a new business venture with one or more partners, it`s essential to have a draft of shareholders agreement in place. This agreement outlines the rights and responsibilities of each shareholder, as well as the rules for decision-making, profit-sharing, and dispute resolution. By preparing this document early on, you can prevent potential conflicts and protect your investments in the company.

Here are some key components to include in your draft of shareholders agreement:

1. Ownership percentages: This section outlines how much of the company each shareholder owns. It`s important to be specific about this percentage, as it determines how profits and losses are distributed.

2. Decision-making: The agreement should specify how decisions are made within the company, such as by majority vote or unanimous agreement. It`s also important to outline the types of decisions that require shareholder approval, such as major investments or changes to the company structure.

3. Roles and responsibilities: Each shareholder`s role and responsibilities should be clearly defined in the agreement. This helps prevent confusion and ensures that everyone is clear on their duties within the company.

4. Profit-sharing: The agreement should specify how profits are shared among shareholders. This can be based on ownership percentages or other factors, such as the amount of work each shareholder contributes to the company.

5. Dispute resolution: In the event of a dispute between shareholders, the agreement should outline a process for resolving the issue. This may involve mediation, arbitration, or other methods of conflict resolution.

By including these key components in your draft of shareholders agreement, you can ensure that everyone involved in the company is on the same page and that your investments are protected. It`s important to have this document reviewed by a legal professional to ensure that it`s legally binding and enforceable. With a solid shareholders agreement in place, you can focus on growing your business and achieving your goals together.