When a new investor joins a company, attention usually goes to valuation and the size of the stake. The rules that will govern the relationship deserve the same attention.
Why timing matters
At the start, the owners share the same objective. That is the best moment to agree how decisions are made and what happens if views later diverge.
What a shareholder agreement should cover
- Reserved matters that need the consent of specific shareholders
- Transfers of shares, pre-emption, drag-along and tag-along rights
- Deadlock and how it is resolved
- Exit routes and their conditions
- Information rights and reporting
Good governance is agreed while interests are aligned, not after they diverge.
A shareholder agreement that reflects these points gives investors and founders clarity and control, and makes future transactions easier.
