FREQUENTLY ASKED QUESTIONS/Is a shareholder agreement useful if I'm a solo founder?/

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What is a shareholders' agreement? Is it useful if I'm the only founder?

 

The shareholders agreement is a contract made between a portion or all of the shareholders of a company. Different from the articles of incorporation, the shareholders' agreement is only binding on the signatories thereto. As such, if a shareholder has not signed the agreement, his/she contractual liability cannot be called into question thereunder.

The shareholders' agreement is designed to organise the relations between shareholders. It may be drafted in many different ways and may contain various clauses depending on the specific situation. Often neglected during the formation of a company, the drafting of this document can prove extremely useful when resolving future potential conflicts which may put the company in danger. It should be noted that even if all the shareholders are in agreement and get along well now at the start of the company, its growth can be significantly hampered as a result of disagreement further down the line.

As such, the shareholders' agreement is similar to a marriage contract, in that it will envisage certain eventualities and provide a certain measure of judicial security by facilitating conflict resolution.

The shareholders agreement: necessary if I'm the only shareholder?

The response to this question solely depends on what plans you have for the company.

Indeed, should you wish to remain the sole shareholder of the company, a shareholders agreement will not be necessary.

By contrast, it is recommended to sign a shareholders' agreement if you plan on, once the Minimum Viable Product (MVP) has been attained or once your idea becomes more concrete, welcoming investors or key persons for future developments. The first beneficiary signatory will benefit from his anteriority when it comes to the transfer of shares within the framework of vesting clauses.

alf provides you with a shareholders' agreement with the necessary clauses to secure and ensure the viability of your company, as soon as your company is incorporated.

Read more:

The content of your shareholders' agreement

The violation of your shareholders' agreement and its consequences

The number of shareholders in your company

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