I Have A Unit Trust: Do I Need A Unitholders Agreement?

There are several different ways to structure a company in New Zealand. Some people opt to set up a unit trust.

Often, a unit trust in New Zealand might simply be established with a Trust Deed. However, in some situations, it could be beneficial to have a Unitholders Agreement.

What Is A Unitholders Agreement?

A Unitholders Agreement is a contract between the different unitholders, or the owners of a trust (and sometimes between the trustees themselves) in New Zealand.

Essentially, it outlines how the trust will be managed — detailing the rights and obligations of each owner.

For instance, you might want to clarify whether a unitholder needs to approve certain types of decisions. This is particularly crucial when the trust has investors!

Why Do You Need A Unitholders Agreement?

While not legally mandated in New Zealand, it’s prudent to have a Unitholders Agreement in place.

Unitholders Agreements typically cover:

• Decision-making processes
• Procedures for when a unitholder wishes to exit the trust
• Resolution of disputes

…and any other provisions you deem necessary!

An experienced New Zealand lawyer can assist you in crafting a contract that suits your specific requirements.

Need Help?

If you require assistance with drafting a Unitholders Agreement in New Zealand, we’re here to support you!

The process can be intricate, so consulting with a knowledgeable New Zealand lawyer is advisable.

You can contact us on 0800 002 184 or at [email protected] for a complimentary, no-obligation consultation regarding your unique situation.

---