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Shareholder Agreement
I need a shareholder agreement for a startup company with three co-founders, outlining the distribution of shares, decision-making processes, and procedures for resolving disputes. The agreement should include provisions for the issuance of new shares, rights of first refusal, and exit strategies for shareholders.
What is a Shareholder Agreement?
A Shareholder Agreement creates binding rules between people who own shares in a Belgian company. It sets out how shareholders make key decisions, buy or sell their shares, and handle disputes. Think of it as a roadmap that guides relationships between company owners and protects everyone's interests.
Under Belgian company law, these agreements complement the official articles of association and can include special voting rights, share transfer restrictions, and profit-sharing arrangements. They're especially valuable for small and medium-sized enterprises where shareholders work closely together. The agreement helps prevent conflicts and provides clear solutions when shareholders disagree about important company matters.
When should you use a Shareholder Agreement?
Put a Shareholder Agreement in place when you're starting a new Belgian company or bringing in new investors. This agreement becomes essential when multiple shareholders need clear rules about decision-making, share transfers, or profit distribution. It's particularly important for family businesses, start-ups seeking investment, or companies where shareholders take active management roles.
The ideal time to create this agreement is before any conflicts arise. Belgian companies often implement it during initial company formation, major ownership changes, or when preparing for future growth. Having these rules ready helps prevent expensive legal battles and protects both majority and minority shareholders from unexpected situations like competitor buyouts or succession issues.
What are the different types of Shareholder Agreement?
- Shareholders Agreement Contract: The standard comprehensive agreement covering core rights, obligations, and governance rules between all shareholders
- Shareholder Loan Agreement: Specifically for when shareholders lend money to the company, including repayment terms and interest rates
- Employee Shareholder Agreement: Tailored for staff members receiving company shares, often including special vesting conditions
- Shareholder Investment Agreement: Focused on new investors joining the company, detailing investment terms and conditions
- Shareholder Transfer Agreement: Specifically for managing share sales between existing shareholders or to new parties
Who should typically use a Shareholder Agreement?
- Company Founders: Often initiate the Shareholder Agreement during company formation to establish clear rules and protect their interests
- Business Lawyers: Draft and review agreements to ensure compliance with Belgian corporate law and protect client interests
- Minority Shareholders: Rely on these agreements to protect their voting rights and investment against majority decisions
- Venture Capital Firms: Use specialized versions when investing in Belgian startups to secure their investment terms
- Family Business Members: Implement these agreements to manage succession planning and maintain family control
- Corporate Directors: Execute and enforce the agreement's terms in daily company operations
How do you write a Shareholder Agreement?
- Company Details: Gather official registration documents, articles of association, and current shareholder information
- Ownership Structure: Map out current share distribution, classes of shares, and voting rights
- Decision Rules: Define which decisions need unanimous approval versus simple majority
- Transfer Provisions: Determine rules for selling shares, including pre-emption rights and valuation methods
- Exit Strategy: Plan procedures for shareholder departure, including buy-out terms and deadlock resolution
- Financial Rights: Specify dividend policies and profit-sharing arrangements
- Digital Platform: Use our platform to generate a legally compliant agreement that incorporates all these elements automatically
What should be included in a Shareholder Agreement?
- Party Identification: Full legal names and details of all shareholders and the company
- Share Structure: Description of share classes, voting rights, and ownership percentages
- Transfer Restrictions: Rules for selling shares, including pre-emption rights and tag-along provisions
- Governance Rules: Decision-making processes, board composition, and meeting procedures
- Dividend Policy: Clear terms for profit distribution and reinvestment
- Dispute Resolution: Belgian-compliant procedures for handling disagreements
- Exit Mechanisms: Procedures for shareholder departure or company sale
- Confidentiality: Protection of company secrets and sensitive information
What's the difference between a Shareholder Agreement and a Joint Venture Shareholders' Agreement?
A Shareholder Agreement differs significantly from a Joint Venture Shareholders' Agreement, though they might seem similar at first glance. While both deal with company ownership and management, they serve distinct purposes in Belgian corporate law.
- Scope and Purpose: Shareholder Agreements govern relationships between all company shareholders, while Joint Venture agreements specifically regulate cooperation between two or more separate businesses forming a new venture
- Duration: Shareholder Agreements typically last throughout a company's lifetime, whereas Joint Venture agreements often have specific project timeframes or milestones
- Asset Control: Standard Shareholder Agreements focus on existing company assets, while Joint Venture agreements detail how partners combine and manage shared resources
- Exit Mechanisms: Joint Venture agreements include specific project completion and withdrawal terms, unlike broader Shareholder Agreement exit provisions
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