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.

About Sprintlaw

Sprintlaw is a new type of law firm that operates completely online and on a fixed-fee basis. We’re on a mission to make quality legal services faster, simpler and more affordable for small business owners and entrepreneurs.

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