SHAREHOLDERS’ AGREEMENT – 3 OR MORE SHAREHOLDERS
Short 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 in conjunction with the Short Standard Form of the Memorandum of Incorporation for Profit Companies.
See also: Shareholders’ Agreement – long 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 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 agreement can be printed onto twelve pages.
What do you need to do to use the Shareholders’ Agreement?
- Read the document to ensure that it suits your requirements. Complete the requisite sections, making changes as required.
- Ensure all the shareholders sign the document with each shareholder getting a copy of the final, signed 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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