A shareholder is someone who invests money into the company. In exchange for his money, he is given a certain number of shares in the company. These shares entitle him to become one of the owners of the company and empowers a shareholder with the right to vote on certain matters related to the company.
As a shareholder, a person is entitled to certain rights with respect to the company. Some of them are:-
The reason behind the limited liability of the shareholders boils down to the fact that the company is a separate legal entity, hence separate from the shareholders.The liabilities of a shareholder are as follows:
A shareholder’s agreement is a contract between the company and its shareholders. It outlines the rights, obligations of the shareholders and provisions related to the management and the authorities of the company. The purpose of the agreement is to protect the interests of the shareholders; especially minority shareholders.
A shareholders’ agreement is a legally binding contract that outlines the regulations used to run a corporation. This agreement is used to protect the interests of each individual shareholder and establish a fair relationship within the company.
When a corporation is created and more than one person will be investing money into the company, a shareholders’ agreement is essential. This document should be drafted and signed right when a corporation is formed to avoid any issues or confusion when setting up the company.
In order for there to be smooth and free-flowing operations, there must be certain policies and procedures set in place. The Shareholders’ Agreement contains the guidelines with respect to how the company will be run on a day to day basis so as to ensure consistent and uninhibited workflow.
Select packages as per your choice and fill out the forms
(2-3 working days) We Will draft a comprehensive agreement based upon your selection and requirements.
(2-3 working days) We Will provide you with a copy of the agreement for you to revise.
(1-2 working days) Ig you still feel that there is something that can be modified, we will promptly add it.
(2-3 working days) We Will do the final submission of soft/hard copies to you.
Select packages as per your choice and fill out the forms (2-3 working days) We Will draft a comprehensive agreement based upon your selection and requirements. (2-3 working days) We Will provide you with a copy of the agreement for you to revise. (1-2 working days) Ig you still feel that there is something that can be modified, we will promptly add it. (2-3 working days) We Will do the final submission of soft/hard copies to you.
What is the process of drafting an SHaer HoHA?
Step 1
Select Package
Step 2
Comprehensive Agreement
Step 3
revision of Agreement
Step 4
Redrafting (if required)
Step 5
Final Submission
Shareholders’ agreements usually contain the following key provisions:
It is imperative to understand that the purpose behind drafting a Shareholders’ Agreement is the necessity to create a balance of interests. The terms of the agreement need to be clearly defined so as to avoid any further confusion. All matters set out in the agreement must be provided for in accordance with the relevant laws in place.
Select packages as per your choice and fill out the forms
(2-3 working days) We Will draft a comprehensive agreement based upon your selection and requirements.
(2-3 working days) We Will provide you with a copy of the agreement for you to revise.
(1-2 working days) Ig you still feel that there is something that can be modified, we will promptly add it.
(2-3 working days) We Will do the final submission of soft/hard copies to you.
