In brief - Replaceable rules don't cover all relevant
governance issues
New companies and start-ups that only rely on the
Corporations Act 2001 for regulation may leave themselves
exposed to other uncertainties around new shareholders, minority
shareholders' voting rights, and, most importantly, funding
requirements.
Shareholders' agreements should detail the company's
management and control
Shareholders' agreements are essential tools for ensuring
that relationships in closely held companies are conducted on
appropriate terms, while also providing protection for shareholders
in more widely held companies.
In our March 2016 article
Shareholders' agreements for new companies and
start-ups, we addressed why shareholders' agreements
are important for new companies and start-ups, the basics around
company ownership and management and how having a well-drafted
agreement can help to manage disputes, including a list of items
that might be included in your
