Shareholders’ Agreement – 2 Shareholders, Long Form MOI

SHAREHOLDERS’ AGREEMENT – 2 SHAREHOLDERS

 Long Standard Form MOI for Profit Companies

Summary A Shareholders’ Agreement may be considered for the mutual protection of the equity holders in a private company incorporated for profit, and strives to ensure that both the shareholders understand their respective rights and obligations in relation to each other.

This Shareholders’ Agreement is intended to be used in conjunction with the Long Standard Form of the Memorandum of Incorporation for Profit Companies.

See also: Shareholders’ Agreement – short form MOI

Why do I need a Shareholders’ Agreement? If your business is a private company with two equity holders, this Agreement may be considered between the parties. A Shareholders’ Agreement, amongst other things, strives to set out the procedure to be followed in respect of the appointment of Directors, Board and Shareholder meetings, the sale of shares, the commission of a breach, policies regarding loan accounts, and other company-related issues.

What does the Shareholders’ Agreement say? The Agreement consists of: Definitions and Interpretation; Introduction; Articles of Association; Working Capital; Loan Accounts and Indebtedness; Guarantees; Directors; Shareholders; Matters requiring Unanimous Consent; Value of Shares; Sale of Shares; Come Along; Tag Along; Transfer of Shares to Family; Forced Sales; Notices; Confidentiality; General.

What does the agreement look like? The document can be printed onto fourteen pages.

What do you need to do to use the agreement?

• Read the template document to ensure that it suits your requirements. Complete the requisite sections, making changes as required.
• Ensure that the Company’s Memorandum of Incorporation (Long Standard Form for Profit Companies) is updated and properly filed.
• Ensure both the equity holders sign the agreement with each party getting a copy of the final, signed document.

Also viewed: Sale of Shares Agreement

When preparing a Shareholders’ Agreement, a working knowledge of the Companies Act is recommended and accordingly a specialist’s advice should be sought.

The Online Agreements Shop cc and its members, staff, legal advisers, partners and consultants, agents and any person associated therewith cannot be held liable for any loss or damage that is incurred or may be incurred by any person as a direct or indirect result of the use of this website or any document or information contained on or obtained from this website, nor as a result of anything that is contained in or left out of any document.