Free Shareholder Agreement Template for Private Companies
Download a customizable shareholder agreement to formalize the rights, responsibilities, and exit terms between co-owners. Ideal for startups, LLCs, and small businesses looking to prevent disputes an
Set the Rules Before the Risks: Why a Shareholder Agreement Matters
A shareholder agreement is a legally binding document that outlines how a company’s shares are owned, how decisions are made, and what happens if an owner wants to leave, sell, or transfer shares. It's essential for defining shareholder rights and responsibilities clearly.
Unlike bylaws or articles of incorporation, this agreement focuses on the relationship between shareholders — helping prevent conflicts and ensuring everyone is aligned on how the business is run, financed, and governed.
Whether you're forming a new startup, managing a small business, or bringing in new investors, a well-drafted shareholder agreement protects all parties and strengthens long-term business stability.
What Is a Shareholder Agreement?
A shareholder agreement is a private contract between the shareholders of a corporation that governs how the company will be managed, how ownership is structured, and how disputes or exits will be handled. It supplements the articles of incorporation and is enforceable under contract law.
When and Why Is It Used?
This agreement is commonly used during company formation, when new shareholders join, or before funding rounds. It defines rules around voting rights, share transfers, minority protections, and founder restrictions to reduce the risk of internal disputes and misalignment.
What’s the Difference from Bylaws or an Operating Agreement?
Bylaws set internal governance for the company (like board meetings and officer roles), while an operating agreement applies to LLCs. A shareholder agreement, on the other hand, governs the relationship between shareholders — such as buy-sell rules, dividends, and veto rights — and can override certain bylaw provisions if structured properly.
What Should Be Included?
A robust shareholder agreement includes: share ownership and transfer rules, dispute resolution methods, funding obligations, non-compete clauses, confidentiality, drag-along/tag-along rights, and terms for buying out departing shareholders.
Prevents Disputes and Protects Every Shareholder’s Rights
Without a clear agreement, disagreements over roles, profit sharing, or exits can derail your business. A shareholder agreement ensures all owners understand their rights, responsibilities, and the rules for handling shares, decisions, and conflicts — helping maintain control and trust.
Comprehensive Shareholder Agreement with Key Legal Protections
- Ownership structure and share class breakdown
- Rules for buying, selling, or transferring shares
- Voting rights, board appointment clauses, and decision-making procedures
- Dispute resolution, non-compete, and confidentiality clauses
- Buy-sell provisions, drag-along and tag-along rights
Essential for Founders, Co-Owners, and Investor-Backed Companies
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Download Your Free Shareholder Agreement Template Now
Formalize ownership rights and responsibilities with this customizable shareholder agreement. It’s perfect for new businesses, joint ventures, and founder teams who want clarity, control, and conflict protection from day one.