Shareholders Agreement Precedent
Shareholders Agreement Precedent for a Private Company, South Africa
A Shareholders Agreement is a legal and enforceable agreement, entered into between the shareholders of the company (where there is more than one shareholder), and which regulates the rights and obligations of the shareholders, as between themselves and as between the shareholders and the Company.
This agreement is a private agreement/document and includes provisions which have been agreed to between the shareholders, such as:
- Voting of Shareholders
- Meetings of Shareholders (General and Annual Meetings)
- Appointment of Directors
- Meetings of Directors
- The powers of the Board
- Restrictive Matters / Minority Protection
- Sale of shares and pre-emptive rights
- Disputes and Jurisdiction
- Breach by a Shareholders and remedies in the case of a breach
- Deemed offers
- Termination of the Company and liquidation
A Memorandum of Incorporation is also required and is a public document/certificate issued by the Companies office (CIPC). The MOI is not an agreement per se and will be the standard form MOI issued by CIPC (unless personalised by the Shareholders). The MOI will therefore not cater for the private needs/agreement of the shareholders.
The shareholders should therefore have both an MOI and a Shareholders Agreement.
To view and purchase a Shareholders Agreement: Click Here
It is recommended that this Shareholders Agreement be purchased, together with the Memorandum of Incorporation Precedent.
To view and purchase a Memorandum of Incorporation: Click Here
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