Purpose and legal effect of a 50/50 shareholders' agreement

A 50/50 shareholders' agreement provides a framework for companies where shareholders have equal ownership and decision-making rights. It establishes how the company will be managed, how key decisions will be made, and how shareholders will work together throughout the life of the business.

The template covers governance, board responsibilities, shareholder decision-making, deadlock resolution, share transfers, financial matters, confidentiality, default provisions, and other key arrangements between the shareholders. It also includes drafting guidance and is intended to be used as a starting point for negotiation before being tailored to the circumstances of the parties.

Companies with equal ownership can adapt this template to create a clear governance framework that supports effective decision-making and helps manage future shareholder relationships.

Disclaimer

This template provides the basic format for a shareholders’ agreement to assist users in documenting the key terms of their shareholder arrangements. This template is provided for use as a guide only. The content provided herein is for general information purposes only and does not constitute legal advice.

This template is based on New Zealand law. We make no representation or warranty that this template is appropriate for use in other countries or that the content satisfies the laws of other countries.

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Upon making any amendments or personalizing the template, the user must remove the Parry Field Lawyers branding from all sections of the shareholders’ agreement.

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