Company Constitution vs Shareholders’ Agreement: What’s the Difference? (and How the Replaceable Rules Fit In)
When setting up or running a private company in Australia, you’ll encounter three key governance frameworks the company constitution, the shareholders’ agreement, and the replaceable rules under the Corporations Act 2001 (Cth). Each serves a different function, applies in different ways, and can have very different legal consequences. Understanding how they interact is essential to avoid shareholder disputes and maintain a compliant governance structure. The Company Constitution – The Internal Rulebook A company constitution is a legally binding document that defines how the company is internally managed. It has the […]
Shareholders Agreements: Seven Key Points Startups and Scaleups Should Consider
A Shareholders Agreement is crucial for most startups and scaleups, as well as many other companies. Here are seven key things startups and scaleups should consider when are thinking of putting a Shareholders Agreement in place: What stage is your company at? If your company has only one shareholder then you may be jumping the gun by putting a Shareholders Agreement in place. However, if you are about to apply for a grant or you are looking for (or have) potential seed or series A investors, a Shareholders Agreement may […]