Members and Shareholders Agreement Template South Africa - Information

Summary

A Shareholders Agreement template 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.

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 a Shareholders Agreement say?

An 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 do you need to do to use a Shareholders Agreement template?

• 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.