Yes — before, not after. The shareholders agreement is what turns “we trust each other” into rules everyone agreed to while they were still friendly: who decides what, how new money dilutes, what happens if someone wants out, and how a deadlock breaks. Taking investment without one hands those questions to whoever has the most leverage when they finally arise.
What it depends on
Where judgement stays human: The accounting and tax framing of a raise is our lane; the agreement itself is a legal document — we’ll make sure the numbers and structure line up and work with your lawyer on the drafting.
A company constitution covers the basics, but it doesn’t settle the things that actually cause founder and investor disputes — drag-along and tag-along rights, reserved decisions, pre-emptive rights, and exit mechanics. Those live in the shareholders agreement.
The point of doing it before you raise is leverage and goodwill: terms are far easier to agree when no one is under pressure and everyone still assumes the best of each other. After the money is in, every change is a negotiation.
The accounting and tax framing of a raise is our lane; the agreement itself is a legal document — we’ll make sure the numbers and structure line up and work with your lawyer on the drafting.
No question is silly, and there's no judgement about where things are at. Tell us what is different about your situation and a CPA will reply personally — usually within one business day.
Reviewed by Graham Chee FCPA (TPB registered tax agent, RAN 15375009) on 1 September 2026.
Local Knowledge Ventures · general information current as at 1 September 2026. This is general information only, not personal financial, tax or legal advice.