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LLC Shareholder Agreement
"I need an LLC Shareholder Agreement for my Australian technology startup with three founding shareholders (equal ownership) and provisions for future investor shareholders, including tag-along rights and a detailed process for issuing new shares."
1. Parties: Identifies all shareholders and the company as parties to the agreement
2. Background: Sets out the context of the agreement, company details, and purpose
3. Definitions and Interpretation: Defines key terms and establishes interpretation rules for the agreement
4. Company Constitution: Establishes relationship between this agreement and the company constitution
5. Share Capital and Classes: Details of share structure, classes, and rights attached to shares
6. Shareholders' Rights and Obligations: Core rights and obligations of shareholders including voting rights
7. Board of Directors: Composition, appointment, removal, and powers of the board
8. Shareholder Meetings: Procedures for calling and conducting shareholder meetings
9. Decision Making: Requirements for passing resolutions and making key decisions
10. Transfer of Shares: Rules and restrictions regarding share transfers, including pre-emptive rights
11. Issue of New Shares: Process and restrictions for issuing new shares
12. Dividend Policy: Framework for determining and distributing dividends
13. Management and Operations: Day-to-day management responsibilities and operational procedures
14. Financial Matters: Financial reporting, records, and audit requirements
15. Confidentiality: Obligations regarding company and shareholder confidential information
16. Dispute Resolution: Procedures for resolving disputes between shareholders
17. Term and Termination: Duration of agreement and circumstances for termination
18. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Tag-Along and Drag-Along Rights: Include when shareholders want protection in case of sale to third parties or need mechanisms for forcing minority shareholders to join in a sale
2. Put and Call Options: Include when shareholders want specific rights to force purchase or sale of shares in certain circumstances
3. Non-Compete and Non-Solicitation: Include when protection against competition from shareholders is required
4. Intellectual Property Rights: Include when the company has significant IP assets or shareholders contribute IP
5. Dead-Lock Resolution: Include for companies with equal shareholding to resolve decision-making deadlocks
6. Management Shareholders: Include when some shareholders are also employees/managers with special rights/obligations
7. Business Plan and Budget: Include when shareholders want formal input into business planning and budgeting
8. Exit Strategy: Include when shareholders want predetermined mechanisms for company sale or IPO
9. Nominee Directors: Include when major shareholders have rights to appoint nominee directors
1. Schedule 1: Details of Shareholders: List of all shareholders with their shareholding details and contact information
2. Schedule 2: Share Capital Structure: Detailed breakdown of share classes, numbers, and nominal values
3. Schedule 3: Reserved Matters: List of decisions requiring special majority or unanimous approval
4. Schedule 4: Tag and Drag Along Procedures: Detailed procedures for implementing tag-along and drag-along rights
5. Schedule 5: Deed of Accession: Template for new shareholders to agree to be bound by the agreement
6. Schedule 6: Fair Value Calculation: Methodology for calculating share values for transfers or exits
7. Schedule 7: Business Plan: Initial business plan and format for future plans
8. Appendix A: Company Constitution: Copy of the current company constitution
9. Appendix B: Board Charter: Detailed guidelines for board operations and governance
Authors
Approved Business Plan
Board
Business
Business Day
Chairman
Change of Control
Company
Company Constitution
Competing Business
Confidential Information
Corporations Act
Dead-Lock
Director
Drag-Along Notice
Drag-Along Right
Effective Date
Encumbrance
Event of Default
Fair Market Value
Financial Year
Force Majeure Event
Group
Independent Director
Initial Business Plan
Insolvency Event
Intellectual Property Rights
Material Contract
New Securities
Nominee Director
Officer
Ordinary Resolution
Original Shareholders
Permitted Transfer
Pre-emptive Rights
Put Option
Call Option
Related Body Corporate
Related Party
Reserved Matters
ROFR Notice
Securities
Share Capital
Shareholders
Shareholders Meeting
Shares
Special Resolution
Subsidiary
Tag-Along Notice
Tag-Along Right
Transfer
Transfer Notice
Valuation Date
Voting Rights
Definitions
Share Capital
Share Transfer Restrictions
Pre-emptive Rights
Tag-Along Rights
Drag-Along Rights
Board Composition
Board Meetings
Shareholder Meetings
Reserved Matters
Management Rights
Information Rights
Dividend Policy
Non-Competition
Non-Solicitation
Confidentiality
Share Valuation
Exit Provisions
Put and Call Options
Dead-Lock Resolution
Default Events
Termination Rights
Force Majeure
Dispute Resolution
Intellectual Property
Financial Matters
Business Planning
Amendment Procedures
Assignment
Notices
Governing Law
Severability
Entire Agreement
Further Assurance
Waiver
Costs and Expenses
Technology
Manufacturing
Professional Services
Retail
Healthcare
Real Estate
Financial Services
Construction
Mining
Agriculture
Media and Entertainment
Education
Transport and Logistics
Hospitality
Legal
Corporate Governance
Board of Directors
Executive Leadership
Finance
Compliance
Risk Management
Corporate Affairs
Investment Relations
Company Secretariat
Chief Executive Officer
Company Secretary
Chief Financial Officer
Corporate Lawyer
Legal Counsel
Board Director
Managing Director
Chief Operating Officer
Company Director
Corporate Governance Manager
Compliance Officer
Risk Manager
Investment Manager
Business Development Director
Shareholder Relations Manager
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