Document background
The Non Compete Shareholders Agreement is a critical document for Australian companies seeking to protect their business interests while maintaining effective shareholder relationships. It is particularly relevant when shareholders have access to sensitive business information, industry expertise, or significant client relationships that could pose a competitive threat if used outside the company. The agreement combines traditional shareholder provisions (such as share transfer restrictions and voting rights) with specific non-compete clauses that must be carefully drafted to ensure enforceability under Australian law. Typically used in private companies, startups, and professional services firms, this agreement helps prevent shareholders from competing with the company while holding shares or for a specified period after their exit. The document must balance the legitimate business interests of the company with reasonable restrictions that will be upheld by Australian courts.
