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Shareholders Deed of Accession
PDF and
Word
A shareholders deed of accession allows the new shareholder to adopt the existing terms quickly and efficiently. Suitable for startups and proprietary companies operating in Australia.
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What is the shareholders’ deed of accession?
A shareholders deed of accession is a legal document used when a new shareholder joins a company that already has an effective shareholders agreement in place. The document is suitable for various types of companies operating in Australia, including proprietary limited companies and unlimited companies. This shareholders deed of accession template is suitable when:
- an existing shareholder sells part of their shares to the new shareholder;
- an existing shareholder sells all of their shares to the new shareholder;
- the company issues new shares; or
- the new shareholder already has shares and simply wants to join the existing shareholder agreement.
A shareholder’s accession deed confirms the new shareholder’s readiness to comply and obey with the provisions of the existing shareholder agreement.
What should be included in this shareholders deed of accession template?
A well-drafted deed of accession template must include a number of important elements, including:
- Details of the Company. This section must include full information of a company whose shares are acquired by a new shareholder. Since the company is also a party to the exiting deed of accession, the company’s full name, contact address, and ACN or ABN number should also be included.
- Details of the New Shareholder. The text of the deed must outline the full name and contact address of a new shareholder that accesses the existing shareholder agreement.
- Details of the Selling Shareholder. This is a current shareholder in the company who sells all or part of their shares to the new shareholder. Thus, a deed of accession template should include their full name and contact address as well.
- Release Statement. If a selling shareholder disposes of all their shares in the company, it is common to include a simple clause by which a selling shareholder is being released from all obligations and duties under the shareholder agreement in favour of the new shareholder.
- Warranties of the new shareholder. In this part of the deed, a new shareholder confirms their readiness to comply with the shareholders’ agreement and be bound by it.
Who should use this deed of accession template?
This solid and well-drafted deed of accession template is suitable for:
- private investors who acquire shares in companies operating in Australia;
- company directors looking for a reliable template to offer for signing new shareholders;
- company existing shareholders requiring a draft of the deed of accession to attach to the existing shareholder agreement;
- small business owners and startup founders searching for a solid template to welcome new shareholders.
How to customise this shareholders deed of accession with FasterDraft?
To get a fully customisable document template, follow a few easy steps below:
- Click the “Create Document” button.
- Answer simple questions in the form.
- Select a template’s format – deed of accession template Australia Word and PDF.
- Make a payment.
- Your document is ready for instant download immediately after the purchase.
Table of content
Frequently Asked Questions (FAQ)
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1. Is a deed of accession for a shareholders agreement legally binding in Australia?
Yes, once signed, the deed of accession shareholders agreement becomes a legally binding document upon the parties involved. By virtue of signing the deed of accession, the new shareholder automatically becomes the party to an existing shareholder agreement.
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2. Do I need a lawyer to use this template?
No, you do not need the help of the lawyer to customise this shareholder accession deed template with FasterDraft.
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3. Is it mandatory to have a deed of accession for a shareholders agreement?
No, in Australia, signing a shareholder agreement is not legally required even if there is an existing shareholder agreement between the current shareholders.
A new shareholder can only be obliged to sign a deed of accession shareholders agreement if the latter directly requires so. In all of the rest cases, this is optional.
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4. Should I use a free deed of accession template from the Internet?
There are lots of websites that offer a deed of accession template Australia free. It is not advisable to use free legal documents from the Internet, and here is why.
First, if a document is offered for free, it can be created by AI and not by real lawyers. Second, a free document does not necessarily mean a good document. Such a document may not be suitable for your specific case or include serious legal mistakes and contradictions.
It is always better to use a trusted online platform such as FasterDraft, offering fully customisable legal documents at affordable prices.
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5. Do I need a witness to sign this deed of accession?
Yes, since this document is executed as a deed, each party’s signature should be additionally witnessed. A witness must be a person at least 18 years old, of sound mind. A witness cannot be a company’s existing shareholder or a new shareholder.