Shareholders Agreement - Short Version

A Shareholders’ Agreement is a legally binding agreement between the shareholders of a company, which serves to formalise and regulate the terms and conditions under which the business relationship between the shareholders is to operate. This agreement is in short format and drafted specifically for smaller companies and where, in particular, the shareholders are family members.

A Shareholders’ Agreement is a legally binding agreement between the shareholders of a company, which serves to formalise and regulate the terms and conditions under which the business relationship between the shareholders is to operate. This agreement is in short format and therefore better suited to smaller companies and, in particular, where the shareholders are family members. Whilst it contains the essential clauses necessary to ensure that the shareholders’ interests are protected, it does not contain those clauses dealing with the appointment of Directors and the management of the company.

This agreement contains the following clauses:

1. Parties
2. Definitions
3. Interpretation
4. Preamble
5. Shareholding
6. Main Object of the Company
7. The Shareholders’ Voting Rights and Meetings
8. Matters Requiring the Consent of a Special Majority
9. Transfer of Shares
10. Obligatory Transfer Events
11. Completion of Share Purchase
12. Fair Value
13. Issue of Further Shares
14. Confidentiality
15. No Partnership
16. Notices
17. Serious Deadlocks: Resolution of Disputes
18. Termination
19. Governing Law and Jurisdiction
20. Utmost Good Faith
21. Severance
22. Variation and Waiver
23. Assignment
24. Costs
25. Conflict with Memorandum and Articles
26. Entire Agreement
27. Counterparts
28. Signatories

Related Documents:

• Shareholders Agreement - Existing Company
• Shareholders Agreement - New Company