Members Agreement: 2 members

MEMBERS AGREEMENT – 2 MEMBERS

Summary

This Members Agreement may be considered for the mutual protection of members in a close Corporation, and strives to establish both the members’ respective rights and obligations in relation to each other. 

More information

Why do I need a Members Agreement?

A Members Agreement, amongst other things, can be useful in setting out the procedure to be followed if a member wishes to sell his/her members interest, if there is a deadlock in the decision-making, if a member is sequestrated or commits a breach, and policies regarding loan accounts.

What type of business should use a Members Agreement?

If your business is a Close Corporation with two members, this Agreement can be considered for use between the members. 

What does the Members Agreement say?

The Agreement consists of:

• Interpretation
• Introduction
• Incorporation of Corporation
• Members’ Meetings
• Matters requiring unanimous agreement
• Financing of the Corporation
• Management of the Corporation
• Valuation
• Life Insurance
• Transfer of Members Interest
• Forced Sales
• Disputes
• Addresses and Notices
• Good Faith
• Confidentiality
• General

What does the Members Agreement look like?

• The agreement can be printed onto six A4 pages.

What do you need to do to use the Members Agreement?

• Read the document to ensure that it suits your requirements. Complete the requisite sections, making changes as required.
• Ensure both the members sign the Agreement with each member getting a copy of the final, signed agreement.

Also known as

• Association Agreement
• Terms of Association
• Close Corporation Agreement

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