SHAREHOLDERS’ AGREEMENT – 3 OR MORE SHAREHOLDERS
Long Standard Form MOI for Profit Companies
Summary A Shareholders’ Agreement may be considered for the mutual protection of shareholders in a private company incorporated for profit, and strives to ensure that all the shareholders understand their respective rights and obligations in relation to each other.
This Shareholders’ Agreement is intended to be used 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? 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 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 Shareholders’ 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 all the shareholders sign, with each shareholder getting a copy of the final, signed Shareholders’ Agreement.
Also viewed: Director’s Acknowledgement & Consent
When preparing a Shareholders’ Agreement, a working knowledge of the Companies Act is recommended and accordingly a specialist’s advice should be sought.
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