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Shareholders Agreement

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Singapore Saint
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Shareholders Agreement

Postby Singapore Saint » Fri, 29 May 2009 9:48 am

Hi,

While setting up a new company in Singapore, I've been quoted around $3000 for drawing up a shareholders agreeement, which to my mind is $3000 that I could make much better use of during the start-up period..

I fully appreciate why we need the agreement, but I object to paying a law firm $3000 for 5-6hrs work when it seems like its just a case of taking a standard document that has been drawn up under Singaporean law, adding the details of 3 people to it, the 3 of us signing and then each holding a copy. (A simplified view, I know...)

Has anyone been able to get a shareholders agreement signed without resorting to paying this kind of money?

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ksl
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Re: Shareholders Agreement

Postby ksl » Fri, 29 May 2009 10:29 am

Singapore Saint wrote:Hi,

While setting up a new company in Singapore, I've been quoted around $3000 for drawing up a shareholders agreeement, which to my mind is $3000 that I could make much better use of during the start-up period..

I fully appreciate why we need the agreement, but I object to paying a law firm $3000 for 5-6hrs work when it seems like its just a case of taking a standard document that has been drawn up under Singaporean law, adding the details of 3 people to it, the 3 of us signing and then each holding a copy. (A simplified view, I know...)

Has anyone been able to get a shareholders agreement signed without resorting to paying this kind of money?


This is an absurd price, name and shame! You will just have to continue to look for a cheaper price, look away from the City, to get a better price, more into the heartlands, or better still go back to the same people and ask for the local area price, explaining that you are not such and idiot, to pay such a ridiculous price
Last edited by ksl on Fri, 29 May 2009 10:31 am, edited 1 time in total.

Singapore Saint
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Postby Singapore Saint » Fri, 29 May 2009 10:30 am

Thanks KSL - not sure if forum rules allow you to name any firms you'd recommend or suggest?

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ksl
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Postby ksl » Fri, 29 May 2009 10:33 am

Singapore Saint wrote:Thanks KSL - not sure if forum rules allow you to name any firms you'd recommend or suggest?
Anything to do with business, look into the heartlands, it's always cheaper than the City. Locals can never afford those kind of prices, so the establishments in the city prey on the wealthier clients that can afford to shop in the city

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Postby Singapore Saint » Fri, 29 May 2009 10:35 am

Great, many thanks!

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jpatokal
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Re: Shareholders Agreement

Postby jpatokal » Sat, 30 May 2009 4:25 pm

Singapore Saint wrote:While setting up a new company in Singapore, I've been quoted around $3000 for drawing up a shareholders agreeement, which to my mind is $3000 that I could make much better use of during the start-up period..

That's completely and totally ridiculous. You can do the entire incorporation yourself on the ACRA website in 30 minutes for under S$300, and that includes a boilerplate shareholders agreement that most people will find perfectly acceptable -- especially if you're running a one-man show and thus the only shareholder!
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Re: Shareholders Agreement

Postby nkthen » Fri, 05 Jun 2009 4:35 pm

Singapore Saint wrote:Hi,

While setting up a new company in Singapore, I've been quoted around $3000 for drawing up a shareholders agreeement, which to my mind is $3000 that I could make much better use of during the start-up period..

I fully appreciate why we need the agreement, but I object to paying a law firm $3000 for 5-6hrs work when it seems like its just a case of taking a standard document that has been drawn up under Singaporean law, adding the details of 3 people to it, the 3 of us signing and then each holding a copy. (A simplified view, I know...)

Has anyone been able to get a shareholders agreement signed without resorting to paying this kind of money?

The reason why it is $3000 is because no 2 partnerships are the same. You can use a boiler plate partnership agreement and pray that nothing exceptional will happen.

Template partnership are also harder to be use in court as any smart lawyer can dismiss that as a template, or use that all-familiar template to look for loopholes.

Or you can pay $3000+, get a customized partnership agreement which covers 100% of your legal protection and suitable for your biz.

It's your call. Being cheapo has it's cost.

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jpatokal
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Re: Shareholders Agreement

Postby jpatokal » Sat, 06 Jun 2009 1:37 pm

nkthen wrote:Or you can pay $3000+, get a customized partnership agreement which covers 100% of your legal protection and suitable for your biz.

Actually, I'd wager a fair amount that at $300-500/hr, getting reputable law firm to draft a real customized shareholders' agreement would cost you more than $3000... and the original company is trying to sell you the free standard template for $3000.
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ksl
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Re: Shareholders Agreement

Postby ksl » Sat, 06 Jun 2009 5:55 pm

nkthen wrote:
Singapore Saint wrote:Hi,

While setting up a new company in Singapore, I've been quoted around $3000 for drawing up a shareholders agreement, which to my mind is $3000 that I could make much better use of during the start-up period..

I fully appreciate why we need the agreement, but I object to paying a law firm $3000 for 5-6hrs work when it seems like its just a case of taking a standard document that has been drawn up under Singaporean law, adding the details of 3 people to it, the 3 of us signing and then each holding a copy. (A simplified view, I know...)

Has anyone been able to get a shareholders agreement signed without resorting to paying this kind of money?

The reason why it is $3000 is because no 2 partnerships are the same. You can use a boiler plate partnership agreement and pray that nothing exceptional will happen.

Template partnership are also harder to be use in court as any smart lawyer can dismiss that as a template, or use that all-familiar template to look for loopholes.

Or you can pay $3000+, get a customized partnership agreement which covers 100% of your legal protection and suitable for your biz.

It's your call. Being cheapo has it's cost.
And a fool and his money is easily parted :P

That's what you try to convince people, to stand the test in court, there are no guarantees at all which side is going to win! Until that day arrives in court he he's better off saving the 2700$ when he may need it more, in fact there is a very good chance that a template agreement is just as good.

Problem with lawyers are they over value themselves in many cases, unless they have made their mark as the best, Someone has to lose in the court room?

To give you a prime example of irrational behaviour i saw this lawyer go up to this woman and her children and asked why did your boy do this, to my son! and he pushed the boy on the head. He demanded an apology, the woman may be never so what happened because all the kids where playing, she was quiet while he was doing his verbal act in front of everyone, his display of professional pride and what a cock up he made of himself.

Anyway his threats of taking her to court over safety, was a load of bullshit. He himself had committed a crime of common assault on a 7 or 8
year old boy, and did exactly what he was accusing the boy of doing to his son, Simply forgetting the boys where playing and not fighting and are also to young for prosecution, surely anybody with a bit of commonsense would know the difference of what is rational and not rational, paying 3000$ for any contract is far from rational, end of story in my opinion.


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