Corporation Ownership Agreement Template for Australia

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Key Requirements PROMPT example:

Corporation Ownership Agreement

"I need a Corporation Ownership Agreement for my Australian technology startup with three co-founders and two angel investors, including specific provisions for future funding rounds and anti-dilution protection, to be implemented by March 2025."

Document background
The Corporation Ownership Agreement is essential for Australian companies seeking to establish clear rules and structures for corporate ownership and governance. This document becomes particularly crucial when a company has multiple shareholders, different share classes, or specific requirements for share transfers and voting rights. It ensures compliance with the Corporations Act 2001 and other relevant Australian legislation while providing a framework for managing shareholder relationships, preventing disputes, and protecting both majority and minority interests. The agreement is commonly used during company formation, when new shareholders join, or when existing ownership structures need formal documentation. It includes detailed provisions for share transfers, voting rights, board representation, dispute resolution, and exit mechanisms, all tailored to meet Australian legal requirements and business practices.
Suggested Sections

1. Parties: Identification of all shareholders and the company

2. Background: Context of the agreement, including company formation details and purpose

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation

4. Share Capital and Certificates: Details of share classes, rights, and certification

5. Ownership Structure: Current shareholding structure and ownership percentages

6. Shareholders' Rights and Obligations: Core rights and responsibilities of shareholders

7. Board Composition and Governance: Structure and operation of the board of directors

8. Decision Making: Voting rights and procedures for key decisions

9. Share Transfer Restrictions: Limitations and procedures for transferring shares

10. Pre-emptive Rights: First right of refusal for existing shareholders

11. Dispute Resolution: Procedures for resolving conflicts between shareholders

12. Confidentiality: Protection of company and shareholder confidential information

13. Term and Termination: Duration of agreement and circumstances for termination

14. General Provisions: Standard legal clauses including notices, amendments, and governing law

Optional Sections

1. Tag-Along Rights: Used when minority shareholders should have the right to join in the sale of shares by majority shareholders

2. Drag-Along Rights: Used when majority shareholders should have the right to force minority shareholders to join in the sale of shares

3. Anti-Dilution Provisions: Include when protecting shareholders from equity dilution is important

4. Deadlock Resolution: Needed for companies with equal shareholding or voting rights

5. Dividend Policy: Include when specific dividend distribution rules are required

6. Put and Call Options: Used when shareholders want predetermined exit mechanisms

7. Non-Compete and Non-Solicitation: Include when shareholders could potentially compete with the company

8. Family Succession Rights: Important for family-owned businesses

9. Foreign Ownership Provisions: Required when foreign shareholders are involved

Suggested Schedules

1. Schedule 1 - Share Capital Structure: Detailed breakdown of share classes, numbers, and nominal values

2. Schedule 2 - Shareholder Details: Complete information about each shareholder including contact details

3. Schedule 3 - Reserved Matters: List of decisions requiring special majority or unanimous approval

4. Schedule 4 - Share Valuation Methodology: Agreed method for valuing shares for transfers or exits

5. Schedule 5 - Business Plan: Initial business plan and strategy

6. Appendix A - Share Certificate Template: Standard form for share certificates

7. Appendix B - Board Resolution Templates: Standard forms for common board resolutions

8. Appendix C - Transfer Notice Form: Standard form for notifying intent to transfer shares

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Technology

Manufacturing

Retail

Healthcare

Financial Services

Real Estate

Mining and Resources

Agriculture

Construction

Family Business

Start-ups and Scale-ups

Small and Medium Enterprises

Relevant Teams

Legal

Corporate Governance

Board Secretariat

Finance

Compliance

Executive Leadership

Investor Relations

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Company Director

Corporate Lawyer

Legal Counsel

Company Secretary

Chief Financial Officer

Corporate Governance Officer

Compliance Manager

Board Member

Shareholder Relations Manager

Investment Manager

Business Development Director

Finance Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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