Shareholders Agreement

Great question! While the MOI is a public document that outlines the basic framework of your company, a Shareholders Agreement dives deeper. It addresses aspects not covered by the MOI, ensuring a comprehensive understanding between shareholders and offering an added layer of protection.

A Shareholders Agreement offers numerous advantages. It ensures all shareholders are accountable, provides protection against potential lawsuits, and clarifies daily company management. Plus, it can set rules to give existing shareholders the first option to buy shares before they’re sold to outsiders. It’s all about safeguarding your interests and investment.

Without a Shareholders Agreement, things can get tricky. For instance, a minority shareholder might block a sale of the company. However, with provisions like ‘come along’ or ‘tag along’ in an agreement, such hurdles can be avoided, ensuring that business decisions are streamlined and in the best interest of all shareholders.

Absolutely! Our in-house specialists, boasts over a decade of experience with Shareholders Agreements. We’re committed to providing top-notch service, ensuring your interests are well-protected.

Our Premium Service is designed with your best interests in mind. Not only do we offer enhanced protection for shareholders, but we also ensure a harmonious understanding between all parties, minimising potential disputes. Our goal is to build trust, offer practical solutions, and ensure your business thrives without any hiccups.

A Shareholders Agreement is a private, legally binding document that outlines the powers, rights, and obligations of shareholders within a company. It goes beyond the standard provisions in the law or the company’s Memorandum of Incorporation (MOI), providing clarity and structure to the shareholder relationship.

Although the new Companies Act and the MOI govern companies, a Shareholders Agreement remains a valuable tool. It allows for more personalised arrangements that address specific needs and scenarios among shareholders, complementing the MOI rather than replacing it.

It is not mandatory if you are the only shareholder, but it is highly recommended—especially for privately owned companies or businesses with close relationships between shareholders and management. It helps prevent disputes and ensures clarity on important matters like share transfers, decision-making, and dispute resolution.

Yes, it is entirely possible. Shareholders and directors have different roles and responsibilities. While one person can hold both roles, they are not required to. A director manages the company’s day-to-day operations, while a shareholder owns a stake in the company.

Shareholders sign the agreement, and in some cases, the company itself may be included as a party. The agreement typically covers critical issues like share transfers, funding arrangements, director appointments, and how disputes or deadlocks will be resolved.

A Shareholders Agreement should include clear structures on how the shareholders will manage their shares and any conflicts of interest with other shareholders.

It will also stipulate the rights of the various shareholders and what they are allowed to do or not.

Such as not being entitled to change the rights of other shareholders to benefit themselves.

The Shareholders Agreement is setup by the internal legal team of Company Partners.

They possess several degrees including LLB’s (Law Degree) and have more than 10 years experience.

A Shareholder is essentially someone who holds a share(s) in a company, furthermore said share being captured in the share register, as per the Companies Act.

Yes it can be changed based on the structures placed in the Shareholder Agreement and/or by agreement between all the Shareholders.