Basic Shareholder Agreement Template

It is highly advisable to conclude the agreement when setting up the company and issuing its first shares. You can use it as a positive step to make sure you and the shareholders are all on the same side when it comes to business. The main purpose of the presentation of shareholder agreements is to protect the shareholders` investment in the company. It also aims to establish a fair relationship between shareholders and to control the company`s activities. If you are writing a sample for a shareholders` agreement, make sure that this is the case: dividends are profits paid to shareholders based on the number of shares they hold in the company. The entity must have sufficient identifiable profits to be able to pay dividends to its shareholders. The company`s profits cannot be declared distributable in the absence of shareholder loans. A shareholders` agreement – or shareholders` agreement – is an agreement or contract describing how the company is to manage. It also lists the rights and obligations of shareholders.

You can use Contractbook`s free template to manage the entire contract lifecycle. This agreement with the date [date of contract] is entered into by the following persons who represent all current shareholders of [CORPORATION] (“Corporation”): as this agreement is a private document, you do not need to place it at the same time as the company files. But all shareholders involved in the company must have a copy of the agreement to keep it with their personal records. This ensures the confidentiality of the terms set out in the agreement. 50. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements or assurances regarding the matters set forth in this Agreement, and there are no conditions, warranties, assurances, agreements, whether express or implied, with respect to such matters. 1.2 Between the parties, the shareholders` agreement takes precedence over the law, the articles of association of the company, all the internal regulations of the board of directors, all management instructions and other previous agreements between the parties on matters governed by the shareholders` agreement. 28. If there are more than two shareholders of this agreement, the initiating shareholder may submit an initiating offer to one of the other shareholders, and the procedure in this shot gun provision is considered as if there were only two shareholders. The offeror shareholder may also submit an offer to the other shareholders as a group, and the other shareholders will either have an agreement between themselves to purchase the shares of the initiating shareholder, or they will choose, as a group, to sell all their shares to the initiating shareholder, and the procedure in this Shot Gun provision will be applied. Use our shareholders` agreement to describe the relationship between a company`s shareholders and how it operates….

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