Document background
The Private Equity Shareholders Agreement is a fundamental document used in German private equity transactions to regulate the relationship between investors, management, and other shareholders of a portfolio company. It is typically implemented following a private equity investment or buyout, establishing the framework for corporate governance, investment protection, and exit strategies. The agreement must comply with German corporate law, particularly the GmbHG (for GmbH companies) or AktG (for stock corporations), while incorporating international private equity market standards. This document is essential for protecting investors' interests, ensuring effective corporate governance, and providing clear mechanisms for future exits, whether through sale or IPO. It addresses crucial aspects such as board composition, voting rights, share transfer restrictions, and information rights, while considering German-specific requirements like co-determination laws and local corporate governance practices.
