There are 2 key issues to consider when taking on a new partner or shareholder:
- How to establish the shareholding for the incoming investor
- How to manage the shareholder relationships.
The following cheat sheet sets out some of the questions you need to consider to ensure your agreement is well thought out and the shareholder relationships are well managed.
The issues listed on the right should, ideally, be addressed as part of the drafting of a legally binding Shareholders’ Agreement.
The JPAbusiness team often provides support for clients to work through these issues and helps set the right basis for partner relationships, including:
- facilitating open planning discussions between parties, and
- drafting Shareholders’ Agreements.
James Price has over 30 years' experience in providing strategic, commercial and financial advice to Australian and international business clients. James' blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.