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Unanimous Shareholder Agreement Checklist

It`s not easy to remove a director or shareholder, so make sure you understand your rights and obligations before giving someone the decision-making power or financial ownership of your business. Impeachment requires careful consideration of the provisions of the Constitution and shareholders` agreement, the Corporations Act and any other applicable appointment or employment agreement, in order to determine who has the right to appoint directors and under what circumstances they may be removed (and when shareholders may be withdrawn or a share repurchase may be made and at what price). As an entrepreneur or shareholder, one of the reasons why a shareholders` agreement is so important is that, if not, decision-making power under the Constitution will likely fall under the purview of the board of directors (where you can quickly be outnumered and lose majority/control).