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A shareholders` pact is a private agreement between shareholders. A company`s statutes are a public document and companies are legally required to comply. The two documents govern the company`s action and may overlap. So they have to make sure they are consistent. Once the business exists for several years, it will probably be necessary to transfer shares or sell them to another shareholder. In order to protect your share of the business, you can be as detailed as you like when it comes to selling or transferring shares. As part of the shareholders` pact, you can make arrangements that may limit certain transfers or sales, or you can consider them from the perspective of the types of sales or transfers that would be allowed. The reasons for these rules are: trading partners often start at good conditions, but eventually fail. While this is not to be expected, a well-written shareholder pact can help prevent significant damage or legal action in the event of disagreement. The shareholders` pact explains what the two parties agreed to before the disagreement, which may prevent a founder or shareholder from doing something dramatic for the way business is run. 7.2 In the event of a disagreement, each contracting party may require that a dividend of XX% of the company`s after-tax profit be distributed proportionately to shareholders. A company`s share agreement, also known as a shareholder contract, contains the terms of a new transaction for all those working for the company.3 min. read 4.3 A member of the board of directors cannot vote on contracts or matters on which the member has a personal or material interest that may be in conflict with the company.

The member of the Board of Directors may participate in the examination of the issue and express his or her views. As this agreement is a private document, you don`t need to place it with the company files. But all shareholders involved in the company must have a copy of the agreement to keep their personal files. This guarantees the confidentiality of the terms of the agreement. A shareholders` pact must have reasonable terms and cannot be used to deceive someone. Although a shareholders` pact should only meet the needs of the company, it should nevertheless cover certain important provisions, including: a shareholders` pact is an agreement between the shareholders of a company. It determines how the company is organized, how it works and what shareholder rights and obligations will be. It also explains how the shares will be issued.

A shareholders` pact contains a date, often the number of shares issued, a capitalization table (or “cap”) that lists the shareholders and their share of the company`s ownership, the possible restrictions on the transfer of shares, the pre-emption rights of the current shareholders for the acquisition of shares (in the case of a new issue to maintain their share of ownership) and the terms of payments in the event of a sale. A shareholders` pact is a contract between the owners of a company that defines their roles, rights and obligations as shareholders of the company. A shareholders` pact defines the appointment of executive shareholders, establishes rules for the appointment and termination of senior executives of the company, and defines requirements for general meetings and shareholders, shareholder obligations, information rights and rights and dividends.