A basic shareholder agreement is an essential legal document that outlines the rights and responsibilities of shareholders in a company. A shareholder agreement is a legally binding contract between the shareholders that provides guidelines for the management and operation of the company.

In New Zealand, a basic shareholder agreement can be tailored to suit the needs of each specific business, and it is generally recommended that all businesses have one in place.

Here are some key elements that should be included in a basic shareholder agreement in New Zealand:

1. Ownership Structure: The shareholder agreement should outline the ownership structure of the company. This includes the number of shares issued to each shareholder and the percentage of ownership for each shareholder.

2. Board Structure: The shareholder agreement should outline the board structure of the company. This includes the number of board members and who they are appointed by and how they can be removed from the board.

3. Voting Rights: The shareholder agreement should outline the voting rights of each shareholder. This includes the number of votes per share and the minimum number of shares required to make decisions.

4. Transfer of Shares: The shareholder agreement should outline the process for transferring shares. This includes any restrictions on who can purchase shares and any conditions for transfer.

5. Dispute Resolution: The shareholder agreement should outline the process for resolving disputes between shareholders. This can include mediation and arbitration clauses.

6. Dividend Payments: The shareholder agreement should outline the dividend payment policy of the company. This includes the amount and frequency of dividend payments.

7. Exit Strategy: The shareholder agreement should outline the exit strategy for shareholders, including how they can sell their shares and what happens if a shareholder wants to leave the company.

In conclusion, a basic shareholder agreement is an essential legal document that should be in place for all businesses in New Zealand. It provides guidelines for the management and operation of the company, which is essential to ensure the smooth running of the business and fairness to all shareholders. If you are a shareholder in a New Zealand company and do not have a shareholder agreement in place, it is important to seek legal advice and draft one as soon as possible.