Shareholder Agreements: Why They Matter for Growing Companies

When you’re starting a company with friends or investors,

the last thing you want to talk about is conflict —

but that’s exactly why you need a shareholder agreement.

Here’s why it matters.

1️⃣ What Is a Shareholder Agreement?

✅ A legal document that sets out the rights, obligations, and protections of each shareholder

✅ Covers voting rights, share transfers, decision-making, and dispute resolution

Think of it as a relationship prenup — before problems arise.

2️⃣ Why Do Growing Companies Need One?

✅ To clarify roles as the company scales

✅ To protect minority shareholders

✅ To ensure smooth entry and exit of shareholders

✅ To prevent messy disputes that can stall growth

Skipping this step often leads to regret later.

3️⃣ What Key Terms Should It Include?

✅ Share transfer restrictions

✅ Tag-along and drag-along rights

✅ Dividend policies

✅ Deadlock resolution mechanisms

✅ Exit and buyout provisions

It’s more than just boilerplate — it should reflect your business’s unique needs.

4️⃣ Who Should Draft It?

✅ Experienced corporate lawyers

✅ With input from your corporate secretary or service provider

Don’t DIY this — a shaky agreement can backfire.

5️⃣ Why Work With Paperwork.sg?

We:

✅ Advise on shareholder governance

✅ Coordinate with legal partners for drafting

✅ Ensure your documents align with compliance requirements

👉 Talk to us about protecting your company’s future