A shareholders’ agreement is a binding contract that regulates the rights and obligations of shareholders. Such agreements establish rules governing the operation of companies and how specific events must be conducted. Unlike the replaceable rules or a constitution required by the Corporations Act 2001 (Cth), shareholders’ agreements are not compulsory. However, upon incorporation, or when [...]
Contracts are the backbone of today’s fast-paced business world. Whether you’re a small business owner or a corporate executive, contracts are essential to ensuring that your interests are protected, and your obligations are clear. However, the complexity of legal language and the potential for unforeseen risks make it crucial to have your contracts reviewed by [...]
National unfair contract terms (UCT) regime came into operation in 2010 which rendered void unfair terms in standard form consumer contracts. Further reforms were introduced in November 2023 which made such UCT’s void, but also illegal. The Competition and Consumer Act 2010 and the ASIC Act 2001 contain significant penalties for using UCTs, with each [...]
It is both good practice and prudent risk management to prepare and use a shareholders agreement for shareholders in proprietary limited companies. They can operate as a “rule book” for shareholders and also separate their private arrangements from the company constitution. A shareholders agreement should (subject to applicable legislation): define the rights and obligations of [...]
