{"product_id":"shareholders-agreement-2-shareholders-short-form-moi","title":"Shareholders Agreement Contract Template - 2 Shareholders - South Africa","description":"\u003cp\u003e\u003cstrong\u003eA shareholders agreement template South Africa companies can use where two shareholders own the business and there is no tie-breaker.\u003c\/strong\u003e\u003c\/p\u003e\n\u003ch2 style=\"text-align: center;\"\u003e\u003cstrong\u003eShareholders Agreement Contract Template - 2 Shareholders - South Africa\u003c\/strong\u003e\u003c\/h2\u003e\n\u003cp style=\"text-align: center;\"\u003e\u003cstrong\u003e \u003c\/strong\u003e\u003cstrong\u003eShort Standard Form MOI for Profit Companies\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eSummary \u003c\/strong\u003eA Shareholders' Agreement may be considered for the mutual protection of shareholders 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.\u003c\/p\u003e\n\u003cp\u003eThis Shareholders' Agreement is intended to be used in conjunction with the Short Standard Form of the Memorandum of Incorporation for Profit Companies.\u003c\/p\u003e\n\u003cp\u003eSee also: \u003ca href=\"http:\/\/agreementsonline.co.za\/agreements\/shareholders-agreement-2-shareholders-long-form-moi\/\"\u003eShareholders' Agreement - long form MOI\u003c\/a\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eWhy do I need a Shareholders' Agreement? \u003c\/strong\u003eA 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.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eWhat does the agreement say? \u003c\/strong\u003eThe 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.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eWhat does the agreement look like? \u003c\/strong\u003eThe template agreement can be printed onto eleven pages.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eWhat do you need to do to use the agreement? \u003c\/strong\u003e\u003c\/p\u003e\n\u003cul\u003e\n\u003cli\u003eRead the template Shareholders' Agreement to ensure that it suits your requirements. Complete the requisite sections, making changes as required.\u003c\/li\u003e\n\u003cli\u003eEnsure both the shareholders sign with each shareholder getting a copy of the final, signed agreement.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003cp\u003eAlso viewed: \u003ca href=\"http:\/\/agreementsonline.co.za\/agreements\/sale-shares-agreement-total-non-shareholder\/\"\u003eSale of Shares Agreement\u003c\/a\u003e\u003c\/p\u003e\n\u003cp\u003eWhen preparing a Shareholders' Agreement, a working knowledge of the Companies Act is recommended and accordingly a specialist’s advice should be sought.\u003c\/p\u003e\n\u003cp\u003e\u003cimg src=\"https:\/\/cdn.shopify.com\/s\/files\/1\/0793\/0750\/5804\/files\/Shareholders-Agreement-2-Shareholders-Short-Form-MOI-1.jpg\" alt=\"Shareholders agreement template South Africa for two shareholders\" width=\"300\"\u003e\u003c\/p\u003e\n\u003ch2\u003eWhy a shareholders agreement matters\u003c\/h2\u003e\n\u003cp\u003eYour Memorandum of Incorporation sets out how the company works. A shareholders agreement sets out how the two of you work with each other, and that is a different question.\u003c\/p\u003e\n\u003cp\u003eWith two shareholders it matters even more, because there is no third party to break a tie. A 50\/50 split with nothing written down is the most common way a good business ends up stuck.\u003c\/p\u003e\n\u003ch2\u003eWho this template is for\u003c\/h2\u003e\n\u003cp\u003eTwo shareholders in a South African private company who want the ownership arrangements recorded in short form, alongside the MOI.\u003c\/p\u003e\n\u003ch3\u003eWhat you get\u003c\/h3\u003e\n\u003cul\u003e\n\u003cli\u003eAn editable document in Microsoft Word, plus a PDF copy\u003c\/li\u003e\n\u003cli\u003eWording drafted and reviewed by a lawyer\u003c\/li\u003e\n\u003cli\u003eA short-form structure built for two shareholders, to sit with the MOI\u003c\/li\u003e\n\u003cli\u003eInstant download after purchase\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003ch3\u003eThe clauses that earn their keep\u003c\/h3\u003e\n\u003cul\u003e\n\u003cli\u003ePre-emptive rights, so neither of you can sell to an outsider without the other getting first refusal\u003c\/li\u003e\n\u003cli\u003eWhat happens on death, disability or one shareholder wanting out\u003c\/li\u003e\n\u003cli\u003eHow shares get valued when someone exits\u003c\/li\u003e\n\u003cli\u003eHow a deadlock gets broken, which is the clause two-shareholder companies most often wish they had\u003c\/li\u003e\n\u003cli\u003eRestraint of trade and confidentiality\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003ch3\u003eGood to know\u003c\/h3\u003e\n\u003cp\u003eA shareholders agreement is a template for you to adapt, not legal advice on your company. Under the Companies Act a shareholders agreement must be consistent with the Act and the MOI, and anything inconsistent is void, so it is worth having an attorney check your final version against your MOI before you both sign.\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eThe 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.\u003c\/strong\u003e\u003c\/p\u003e","brand":"Agreements Online","offers":[{"title":"Default Title","offer_id":59164040003724,"sku":"AO-3400","price":1014.15,"currency_code":"ZAR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0793\/0750\/5804\/files\/Shareholders-Agreement-2-Shareholders-Short-Form-MOI-1.jpg?v=1789524768","url":"https:\/\/agreementsonline.co.za\/products\/shareholders-agreement-2-shareholders-short-form-moi","provider":"Agreements Online","version":"1.0","type":"link"}