Author introductory note
This document is a clause to be inserted into a shareholders’ agreement, providing that the shareholders’ agreement will terminate if the company becomes listed.
Where it is contemplated that, in the future, shares of the company will be listed on the Australian Stock Exchange, it is advisable to stipulate that the shareholders’ agreement will terminate when this occurs, and the effect that such termination will have on the rights of the parties to the agreement.
Using this precedent
This is a general clause which can be inserted into a shareholders’ agreement. It can also be added to the termination provisions of the separate precedents “Shareholders’ agreement (short form)”.
When inserting this optional clause into an agreement, care must be taken to ensure that the agreement remains consistent. Cross-references, definitions and schedules should all be checked.
This document has been authored for Lexis Nexis by Elise Margow, Principal, Legally Speaking.
This document is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.