What Is Needed For Shareholders Agreement

Our model shareholders` agreement lists all the commonly reserved elements, including: preparation of fees, loans, loans, guarantees, modification of the share capital, payment of dividends, acquisition/sale of certain assets, amendment of the articles of association or voluntary dissolution of the company. Make sure that nothing limits the effective management of the company. A SHA often also grants shareholders pre-emptive rights, so that if the company does not exercise or only partially exercises its redemption rights, the non-transferring shareholders have the primary right to acquire these shares in proportion to their existing holdings. A SHA should clearly set out the detailed mechanism by which shareholders can exercise their pre-emption rights and how the shares thus acquired are to be paid.