Shareholder Agreement Key Terms

When to use this

Use this skill when:

• Shareholders are in early-stage negotiation and need to agree commercial terms before instructing lawyers to draft a full shareholders' agreement (SHA).
• A term sheet or heads of terms for a shareholders' agreement is needed.
• An existing shareholders' agreement is being renegotiated and the key terms need to be reset before a full redraft.
• A new investor is being onboarded and the investment terms need to be mapped before formal documentation.

Relationship to full SHA: This skill produces a key-terms document (commercial term sheet or heads of terms). For the full legal agreement, use [[prompt-pack-shareholders-agreement]]. The key-terms document is typically non-binding on substance but binding on exclusivity and confidentiality.

Key terms to address

The following are the commercially critical provisions in any shareholders' agreement. The key-terms document should resolve each one before a full SHA is drafted.

1. Governance