Shareholders agreement

 

Shareholders agreement

 

 

Would you like to have shareholders' agreement or resolve the disputes? At Contract Pro, you will find a great team that will capably assist you. We understand what you want and how your requirements are different from others. That is why our shareholders' agreement is not a 'one-size-fits-all'. We do not provide "template contract" but we draft specific contracts for client needs from scratch.

Let us know what your specific requirements are and we will draft the shareholders agreement to specifically cater for you and the circumstances of your company stop. We encourage companies and individuals to call us to draft a suitable agreement for great protection and peace of mindbefore entering into any partnership or to invest money. Our team has "seen it all". Despite this there is always some unexpected exigency that one cannot predict. We have 30 years experience in drafting contracts of this nature and we are updated as to the current company legislation South Africa. It is absolutely essential truth draft have contracts in a manner which specifically caters for the company involved and shareholders and directors and, as much as possible, is able to cater for all possible eventualities that might arise in the future, and stipulates to all the obligations of the directors and the company and any other stakeholders/shareholders in the clearest possible manner.

In our experience more than 90% of shareholders agreements and commercial contracts in the in the medium term and most companies are dissolve or liquidated or shareholders and stakeholders on company on very unfavourable and unfriendly terms. This is generally caused by bad management and bad planning and often the shareholders agreement is just a template doesn't cater for the specific circumstances this can make things even worse.

Our job is to cater for everything pertaining to your specific circumstances and draft a customised shareholders agreement for the purpose of protecting everyone's interest and ensuring that the management and/or institution in future of the company occurs in an orderly manner without any unpleasant surprises. This shareholders agreement should ensure that any shareholders who might be out of line the future may be dealt with appropriately without any unnecessary complications.

What will include in our shareholders agreement?

Unexpected Exit

We cover this point for protecting the rights of the shareholders. Our agreement will stipulate what happens if a director or shareholder dies or becomes totally and permanently disabled for work or if he or she voluntarily willingly to cash out or exit.

Shareholders Contributions and Benefits

The agreement will specify, in detail, exactly how much each and every shareholder has invested to get the respective shares and any possible obligations they may have going forward. People can acquire shares in a company in various ways and with different amount, so it’s important to stipulate these clearly and comprehensively. 

Decision Making and other powers

This section is considered to be the most important it covers a complete detail on who will take the decision, how the company is going to be managed moving forward and all related shareholder obligations

Apart from this, dividends and financing, exit strategy deadlocks and disputes will be cover edin the agreement.

The purpose of this agreement is to set the ground rules on matters affecting shareholders of a business. Also, this mentions everything - business operations, powers, and duties of directors, voting rights, or how capital will be managed. Additionally, disputes may occur among the shareholders in your company and to avoid such disputes we are here to resolve them immediately by providing different solutions and in different ways. The most common disputes that you might face in your company are disagreements regarding business decisions or minority shareholders going unheard and we include this necessary clauses in the shareholders agreement in order to cater for such exigencies.

If seeking a contract lawyer to draft your Shareholders Agreement in South Africa, simply contact us and we’ll willingly be of service.

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