Shareholders Agreement

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Shareholders Agreement

Create a customised Shareholders Agreement suited to your Company's needs.

A Shareholders Agreement regulates the relationship between the Shareholders of the Company.

The importance of the Shareholders Agreement

When starting a company, you, together with your fellow shareholders are the best of friends now, which you assume will continue indefinite. The unfortunately reality, however, is that most businesses fail due to a fall out between the shareholders. Hopefully, this does not ever happen to your company.

A Shareholders Agreement acts as a safeguard against potential fallouts between shareholders, as well as regulating certain governing aspects of a company.

Included in the Shareholders Agreement

The Shareholders Agreement includes all the basic aspects of a Shareholders Agreement including:

  • The share capital of the Company;
  • The names of shareholders, coupled with the number of shares issued to each;
  • Provisions pertaining to shareholder loans;
  • The dividend policy of the Company;
  • Pre-emptive rights clauses, in that shareholders must first offer shares they wish to sell to other shareholders, before offering them to outsiders;
  • The Company’s dividend policy;
  • The process followed in order to value shares of the company;
  • Drag Along and Tag Along rights;
  • Dispute resolution procedures;
  • Provisions pertaining to Confidentiality.
  • How new shareholders will be alloted shares in the Company;
  • How director remuneration is determined;
  • Dispute resolution procedures;
  • Instances required of a forced sale of shares if a shareholder becomes incompetent or breaches the Shareholders Agreement;
  • Provisions pertaining to Confidentiality.

How does it work?

When you start the questionnaire, you will be guided through the questions with the helping hand of explanations and additional information. Based on your answers, the Shareholders Agreement will be tailor-made by our system. If you log in or create an account, you can also save the progress of the questionnaire and come back later.