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There are several different ways to structure a company in 2025. Many business owners continue to explore flexible forms such as unit trusts, which can offer favourable tax strategies and operational flexibility.
Often, a unit trust might simply be established with a Trust Deed. However, in certain situations – especially when multiple parties or investors are involved – it’s wise to also have a Unitholders Agreement in place, ensuring that everyone’s rights and obligations are clearly outlined.
What Is A Unitholders Agreement?
A Unitholders Agreement is a legally binding contract between the unitholders – the owners of a trust – and sometimes even between the trustees. It serves as a roadmap for managing the trust, clearly setting out the rights, responsibilities and decision‐making processes for each party.
In essence, it details how the trust will be run, including provisions for resolving disputes and managing investor relations. For additional clarity on drafting robust contracts, you might review our guide on what makes a contract legally binding.
For example, you may wish to specify whether certain decisions require unanimous consent or if a majority vote is sufficient – a feature that becomes particularly important when engaging with investors or additional participants.
In today’s evolving business landscape, having a comprehensive Unitholders Agreement is more critical than ever. It not only clarifies governance and dispute resolution mechanisms but also provides a stable framework that can adapt as your trust grows. Many of our clients have benefitted from customised agreements that align with their long‐term goals – a service we detail in our contract review services.
Why Do You Need A Unitholders Agreement?
While not a statutory requirement, it’s always a prudent step to have a Unitholders Agreement in place to avoid potential disputes and ensure organisational clarity as your trust evolves in 2025.
Unitholders Agreements typically address:
- How decisions are made
- What happens when a unitholder wishes to exit the trust
- How disputes are managed and resolved
…and any additional terms that suit your unique needs!
Engaging with an experienced lawyer can ensure that your Unitholders Agreement is tailored to your specific circumstances and future‐proofed against industry changes. Our team’s expertise is regularly updated to reflect current best practices in 2025.
Need Help?
If you need assistance drafting a Unitholders Agreement, we’re here to help! Our experienced legal team understands the complexities involved and can guide you through every detail.
Drafting a thorough Unitholders Agreement is a complex process that can save you significant headaches in the future. It’s always a good idea to consult with a specialist, especially if you are managing multiple investors or a growing trust. For more insight into related matters, you might also explore our resource on business structure considerations.
You can reach us on 1800 730 617 or at team@sprintlaw.com.au for a free, no‐obligations consultation about your specific situation. Additionally, our contract review services are designed to help ensure your agreements remain secure and compliant in 2025.
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