Shareholders Agreement South Africa Doc

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What will happen to your actions if you die? Now, you could say they pass to your spouse and/or children, but if the shoe is on the other foot, would you want to be in business with your co-shareholder`s spouse and/or children? This issue is all the more important in companies in which shareholders are actively involved on a daily basis. We believe it is important that the shareholders` agreement (and MOI) clearly determines what will happen to the shares of a deceased, disabled, outgoing or insolvent shareholder. 10.1. Shareholders are entitled to declare dividends or make other payments to shareholders. 4.2. The provisions of this Agreement shall take precedence in any conflict between the provisions of this Agreement and the articles of association of the company. The MOI is the top rank of both documents. It is, however, a public document, so certain points that shareholders wish to settle in a more confidential manner must be dealt with in the shareholders` agreement. All points of the shareholders` agreement in conflict with the MOI are null and void and not current. It is therefore important that both documents are prepared simultaneously. The issue of shares is carried out only by means of a proportional offer of preferential rights to all shareholders on that date.

If a shareholder does not release his rights, it is presumed that he has renounced those rights vis-à-vis other shareholders who follow their rights in the same proportion as they follow their rights. Shareholders agree that when a shareholder does not have the financial means to enforce his rights, the obligation to issue preferential rights does not constitute unjustified, unfair or unfair conduct. Any aspect that is not covered by the Incorporation Protocol (MOI) must be covered by the shareholders` agreement. Any aspect that has not been agreed in this way often has to be settled by a dispute that is very expensive and delayed – something that could have been avoided. (g) shareholders – together, all registered shareholders of the Company from time to time. 10.6. Shareholders must declare dividends and obtain payment within thirty (thirty) days of the company`s annual accounts. 1.1.

The titles of the clauses of this Agreement are for clarity and reference only and shall not be used to interpret the terms of this Agreement or any provision of this Agreement. Disputes between shareholders and other stakeholders are costly and can be inconvenient and detrimental to day-to-day operations. . . .

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