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There are several different ways to structure a company. Some people like to set up a unit trust.
Often, a unit trust might simply be set up with a Trust Deed. However, in some situations it could be a good idea to have a Unitholders Agreement.
What Is A Unitholders Agreement?
A Unitholders Agreement is a contract between the different unitholders or the owners of a trust (and sometimes between the trustees themselves).
Put simply, it sets out how that trust will be managed — setting out the rights and responsibilities of each owner.
For example, you might want to establish whether a unitholder needs to approve certain types of decisions. This is particularly important when the company has investors!
Why Do You Need A Unitholders Agreement?
While not a legal requirement, it’s always a good idea to have a Unitholders Agreement in place.
Unitholders Agreements typically address:
- How decisions are made
- What happens when a unitholder wants to leave the trust
- How disputes are handled
…and anything else you might want to include!
An experienced lawyer can help you put together a contract that works for you and your needs.
Need Help?
If you need help putting together a Unitholders Agreement, we’re here to help!
It can be quite a complex process, so it’s a good idea to speak with an experienced lawyer.
You can reach us on 1800 730 617 or at team@sprintlaw.com.au for a free, no-obligations consultation about your specific situation.
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