This document is a template unit holders and shareholders agreement.

This precedent sets out the terms and conditions a practitioner would expect to find in an agreement between unit holders of a unit trust, where the trustee of the unit trust is a corporation.

The precedent should only be used as a guide. It does not take into account the unique circumstances of the trust, the unit holders, the company and the shareholders, and it does not include each and every possible term and condition that can be found in a similar agreement.

Entering into a unit holders and shareholders agreement

The Corporations Act 2001 (Cth) (Corporations Act), the trusts law and the common law govern the actions of both shareholders and unit holders. The Corporations Act, the trusts law, the common law, the trust deed and the constitution of the company acting as a trustee, provide basic guidance about the relationship of unit holders, and their related entities which act as the shareholders of the trustee, with each other, and with the company of which they are shareholders.

Tailoring the agreement

The agreement may need to be tailored further than the current draft provides for. For example, there may be more than two unit holders which will be parties to the agreement. Please take care in making any amendments and ensuring that any new parties or definitions are followed throughout the agreement.

Related precedents