Purpose and legal effect of a majority shareholders' agreement

A majority shareholders' agreement provides a framework for companies where one or more shareholders hold a controlling interest. It establishes how the company will be governed while balancing the rights and responsibilities of both majority and minority shareholders.

The template covers governance arrangements, board responsibilities, shareholder decision-making, share transfers, financial matters, confidentiality, default provisions, and dispute management. 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 can customize this template to establish clear governance arrangements while reflecting the commercial relationship between majority and minority shareholders.

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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