If one of the shareholders is an individual, the person should sign the document and the signature must be certified by a witness who will fill in his or her name, address, occupation and sign directly under the person`s signature. Non-competition – These clauses would prevent shareholders from engaging in companies that compete with the company`s operations. They protect the activities and interests of other shareholders in the business of the company. Social capital is the financing that the company receives from the stock allocation. This form filler makes available to the company the social capital as well as the participation of each shareholder of the company. Note that under the CAMA Companies and Allied Matters Act, a company is not authorized to award all shares, but must distribute at least 25% of its shares to shareholders. The usefulness of the shareholders` pact makes it an essential instrument for the management of companies and the safeguarding of the interests of the shareholders envisaged. In the development of contractual terms, it is also necessary to ensure, in other cases, that the terms of the contract are not only in accordance with the rules of the contract and the laws applicable to the activities of the existing companies, but also that the shareholder contract is sufficiently detailed to cover all the essential interests of the shareholders. The search for professional legal expertise is therefore recommended. PandaTip: This section ensures that shareholders have the same expectations about when they can withdraw money from the company and ensure that distributions do not compromise the company`s financial needs. “Why you desperately need a shareholder contract for your start-up” is part of Lawyers” “What Startups Badly Need Series”.
Subscribe to our blog so you never miss an article in this series. The document defines the rights of shareholders, for example. B the right to dividends when they are declared, the right to vote, the right to participate in the company`s decision-making process, etc. The document also outlines the alliances and representations of the contracting parties. Termination of the contract: the shareholder contract should include a termination clause imposing the event or the terms of termination of the contract. Dispute Resolution – These clauses resolve contentious situations arising from shareholder contracts or shareholder relationships within the company. These clauses are governed by issues such as warnings, arbitration procedures, current legislation, etc. Several issues of interest to shareholders may be included in a shareholder contract. However, some important clauses to consider are: 3.7 Any offer to buy shares outside must include the condition that the foreigner agrees to become a party to the agreement in accordance with the acquisition of the shares. 2.1 Governance (a) The company is governed by a shareholder-appointed board of directors (the board of directors) within the meaning of this agreement.
In the event that a candidate on the board of directors of one of the shareholders does not vote on the provisions of this agreement and acts as a director, the shareholders agree to exercise their right as shareholders of the company and in accordance with the company`s statutes, to remove that candidate from the board of directors and to elect such a person on the spot or even in their place who will do its best to implement the provisions of this agreement. , but only if the shareholder whose candidate has been withdrawn does not appoint a successor within fourteen days of the date on which the candidate was withdrawn.