Shareholders Agreement: 3 or more shareholders

SHAREHOLDERS AGREEMENT – 3 OR MORE SHAREHOLDERS

Summary
This Shareholders Agreement may be considered for the mutual protection of shareholders in a private company, and strives to ensure that all the shareholders understand their respective rights and obligations in relation to each other. 

Note: When Shareholders sign a Shareholders Agreement, a working knowledge of the Companies Act is required and an expert’s advice should be sought.

More information
Why do I need a Shareholders Agreement?
A Shareholders Agreement, amongst other things strives to set out the procedure to be followed if a shareholder wishes to sell his/her shares, if there is a deadlock in the decision-making, if a shareholder is sequestrated or commits a breach, and policies regarding loan accounts.

What type of business should use a Shareholders Agreement?
If your business is a private company with three or more shareholders, this Agreement may be considered for use between the shareholders. 

What does the Shareholders Agreement say?
The Agreement consists of:

• Definitions and Interpretation
• Introduction
• Articles of Association
• Working Capital
• Loan Accounts and Indebtedness
• Guarantees
• Directors
• Shareholders
• Value of Shares and Claims
• Pre-emptive Rights
• Come Along
• Tag Along
• Transfer of Shares to Family
• Forced Sales
• Notices
• Confidentiality
• General

What does the Shareholders Agreement look like?

• The agreement can be printed onto eight A4 pages.

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

• Read the document to ensure that it suits your requirements. Complete the requisite sections, making changes or adding additional shareholders as required.
• Ensure all the shareholders sign the Agreements with each Shareholder getting a copy of the final, signed agreement.

Disclaimer
The Online Agreements Shop cc and its members, staff, legal advisers, partners and consultants, agents and any person associated therewith cannot be held liable for any loss or damage that is incurred or may be incurred by any person as a direct or indirect result of the use of this website or any document or information contained on or obtained from this website, nor as a result of anything that is contained in or left out of any document.