Simple Heads of Agreement for a Shareholder's Agreement

A Simple Heads of Agreement is a preliminary agreement between three individuals who are setting up a new company in which each of them will be both a shareholder and a director. This agreement assumes that a formal Shareholders Agreement will be entered into but until that time, this agreement will have contractual effect. A written Simple Heads of Agreement will prove valuable in the event of disagreements, misunderstandings or litigation. (continued ...)