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Because we act in a number of shareholder disputes we also get our fair share of instructions to write shareholder agreements.

One of the most critical parts of any shareholder agreement is the method for valuing a partner’s share when they exit. What suits?

1. A fixed lump sum.

2. A formula based on years of service.

3. A straight determination of value based on equity on the balance sheet by the external accountant.

4. A business valuation.

5. Something more exotic.

There are endless variations.

Of equal importance is the need to agree to the method for breaking any stalemate. For example, if you disagree with the company accountant’s balance sheet then we can ask the President of the CA ANZ to appoint an independent person and you pay the costs.

If you need a shareholders agreement Stratos Legal can prepare a draft for discussion purposes for a fixed fee within an agreed time frame.

Who better to ask then the lawyers who pull them apart!