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Shareholder Agreement
I need a shareholder agreement for a startup company with three 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 mechanisms for handling the departure of a shareholder.
What is a Shareholder Agreement?
A Shareholder Agreement sets clear rules between people who own shares in a Dutch company (BV or NV). It goes beyond the basic company articles and covers key issues like selling shares, voting rights, and how big decisions get made. Think of it as a roadmap that helps prevent conflicts between shareholders.
Under Dutch corporate law, these agreements let shareholders create custom arrangements that work for their specific situation. They can include rules about profit sharing, non-compete clauses, and what happens if someone wants to leave the company. While not legally required, having one makes running your business much smoother, especially when dealing with unexpected situations or disagreements.
When should you use a Shareholder Agreement?
Create a Shareholder Agreement right when starting your Dutch company or bringing in new shareholders. This timing lets you set clear rules before any conflicts arise. It's especially important when founding teams have different roles, investment levels, or expectations about running the business.
The agreement becomes vital in specific situations: when shareholders have unequal voting rights, if some owners work in the business while others don't, or when planning future investment rounds. Dutch companies often use these agreements to protect minority shareholders, control share transfers, and define exit strategies. Getting it done early saves headaches later when emotions might run high.
What are the different types of Shareholder Agreement?
- Corporation Shareholder Agreement: Standard comprehensive agreement for larger companies with multiple shareholders, covering governance and decision-making
- Share Purchase And Shareholders Agreement: Combines share sale terms with ongoing shareholder rights, ideal for new investor entry
- Nominee Shareholder Agreement: Used when shares are held by a nominee on behalf of beneficial owners
- Employee Shareholder Agreement: Specialized version for staff share ownership schemes with specific work-related provisions
- Shareholder Loan Agreement: Governs lending arrangements between shareholders and the company
Who should typically use a Shareholder Agreement?
- Business Founders: Initiate and sign Shareholder Agreements when establishing their Dutch BV or NV, setting core rules for company governance
- Private Investors: Use these agreements to protect their investments and define their rights when buying into existing companies
- Corporate Lawyers: Draft and review agreements to ensure compliance with Dutch law and protect client interests
- Board Members: Help implement and enforce the agreement's terms in daily operations
- Minority Shareholders: Rely on these agreements to protect their rights and voting power
- Company Directors: Execute the agreement's provisions and ensure proper corporate governance
How do you write a Shareholder Agreement?
- Company Details: Gather accurate business registration info, including KvK number and corporate structure
- Shareholder Information: List all shareholders with their details, share percentages, and investment amounts
- Decision Rules: Define which decisions need unanimous approval vs. majority vote
- Share Transfer Terms: Outline rules for selling shares, including right of first refusal and valuation methods
- Exit Strategy: Plan procedures for shareholder departures or company sale
- Dividend Policy: Specify how and when profits will be distributed
- Management Structure: Document roles, responsibilities, and voting rights of directors
What should be included in a Shareholder Agreement?
- Party Identification: Full legal names and details of all shareholders and the company
- Share Structure: Detailed breakdown of share classes, voting rights, and ownership percentages
- Transfer Restrictions: Rules for selling or transferring shares, including pre-emptive rights
- Governance Provisions: Decision-making processes and board composition rules
- Deadlock Resolution: Clear procedures for resolving shareholder disputes
- Dividend Policy: Terms for profit distribution and reinvestment
- Exit Mechanisms: Procedures for shareholder withdrawal or company sale
- Dutch Law Clause: Statement confirming Dutch law governs the agreement
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. While both deal with ownership and control, they serve distinct purposes in Dutch corporate law.
- Scope and Purpose: Shareholder Agreements govern relationships between all shareholders in a single company, while Joint Venture agreements specifically manage collaboration between two or more separate companies forming a new entity
- Duration: Shareholder Agreements typically last the company's lifetime, whereas Joint Venture agreements often have specific project timelines or exit provisions
- Resource Sharing: Joint Venture agreements focus heavily on combining resources, technology, and expertise, while Shareholder Agreements primarily address ownership rights and governance
- Risk Distribution: Joint Venture agreements detail specific project risks and responsibilities, while Shareholder Agreements focus on general company operations and decision-making processes
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