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An Option Deed – also called a Call Option Deed – is a valuable instrument in 2025 when you grant a party the right to, at their option, purchase shares in your company. Whether you’re rewarding loyal shareholders or enticing potential investors, an Option Deed provides a clear framework for future share transfers.
It’s a contract where one party grants another the right to purchase a specific number of shares at a predetermined price. These shares can be either new shares issued by the company or pre-existing shares held by a shareholder. This versatility supports various capital raising strategies and complements our guidance on Company Set Up and other corporate legal documents.
Option deeds – often known as option contracts – are frequently drafted with an expiration date. This means that if a party does not exercise their right to purchase the shares by a specific date, the right lapses, ensuring that your company’s equity structure remains current and manageable.
Not only do option deeds simplify future equity transactions, but they also serve as an excellent tool to incentivise key team members and attract investment in the competitive business climate of 2025. With the evolving landscape of corporate finance and regulatory adjustments, having robust and updated legal documentation is more important than ever—just as our articles on business structure and Shareholders Agreements advise.
What’s Included In An Option Deed?
An Option Deed typically includes details such as:
- An agreed timeline for when the shares are granted
- Conditions or milestones that must be reached before the shares can be purchased
- The predetermined price at which the shares will be available
Where Can I Get An Option Contract?
Like any other contract, an option contract should be drafted by a legal professional to ensure a smooth, compliant process in the event of any disputes. For a comprehensive approach to your corporate documentation, you might also review our resources on updating other key agreements, including Shareholders Agreements.
At Sprintlaw, we offer an Option Deed package which includes:
- An Option Deed tailored to your business’s unique requirements
- Phone consultations with an experienced Sprintlaw lawyer
- Fixed-fee pricing with complete transparency
Why Sprintlaw?
It’s crucial to consult a lawyer before drafting an Option Deed to ensure that it accurately reflects your business’s situation and future ambitions. A legal professional can also advise on whether related documents – such as a Shareholders Agreement or updates to your company structure as discussed in How to Change Your Business Structure – should be revised in line with the current market demands of 2025.
At Sprintlaw, we have extensive experience with Option Deeds, capital raising, drafting Shareholders Agreements, and advising on a wide range of corporate and commercial legal matters. Our team keeps up-to-date with the latest regulatory changes and industry trends, ensuring your legal documents remain robust, tailored, and fully compliant.
Don’t hesitate to contact our friendly team at team@sprintlaw.com.au or on 1800 730 617 for a free, no-obligations chat. We’re here to assist you in securing the best legal foundation for your business in 2025 and beyond.
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