Shareholders Agreement

R3,000.00 R2,500.00

Shareholders Agreement Precedent (private company)

A Shareholders Agreement, is an agreement between the shareholders of the company and between the shareholders and the company itself, and regulates the rights and obligations of the shareholders to each other and to the company, as well as the rights and obligations of the directors appointed by the shareholders.

In South Africa, the Companies Act 2008 regulates all matters relating to companies, shareholders and directors. In 2008, the Companies Act was amended and now includes provisions which are mandatory and cannot be contracted out of.  Further, a Memorandum of Incorporation (“MOI”) was introduced, which now substitutes the old Memorandum of Association and Articles of Association.  An MOI is a public document and can therefore be inspected by any member of the public at any time.

The effect of the aforesaid, is that that shareholders should have both an MOI and a Shareholders Agreement. The MOI will regulate all matters which are mandatory and are not private as between the parties, for example funding, dividends, breach and disputes. These provisions will be included in the Shareholders Agreement.

It is recommended that this Shareholders Agreement be purchased, together with the Memorandum of Incorporation Precedent.


Shareholders Agreement

This Shareholders Agreement Precedents:

  1. Is for a private company in South Africa;
  2. Can be used for any number of shareholders and directors;
  3. Regulates the rights and obligations of the shareholders and directors of a company;
  4. Has been drafted in accordance with the Companies Act, 2008 (South Africa);
  5. Provides for the protection of the rights of the minority shareholders in the company;
  6. Regulates the terms agreed to between the parties, which are of a private nature, for example funding and are not included in the memorandum of incorporation.

CH Legal Consulting has also drafted a Memorandum of Incorporation to be used with this Shareholders Agreement.

Shareholders must consider the risks, if the other shareholder/s breach the agreement, if a shareholders wishes to sell its shares, as the voting rights of the parties (as shareholders and as directors).

  • This Precedent comes with 2 alternative face covers to suit your needs.
  • Supports Microsoft word
  • Single Download
  • Free support in setting the agreement up
  • See our purchaser policy for more details on our terms
  • Our agreements are protected by copyright - see our copyright & disclaimer
Shareholders Agreement

"Shareholders", "Company", "Private"

1 review for Shareholders Agreement

I like to say thank you so much for your good hospitality,concentration and your excellent service, you are the best and honest, God bless you.
Hezekyas Drar



This Precedent regulates the rights of shareholders and directors of a company.

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  • Get a package with a package of services and fixed fees
  • Can be a pre-determined package or a tailor made
  • You can also choose a bundle of Precedent AgreementS
  • Email me with your request and I will put a quote together for you