Free Shareholders Agreement South Africa

11.2. Any notification or notification required or admissible for the purposes of this Agreement is valid only if it is written, but it is authorized to communicate it by fax or email. A shareholder pact can be prepared at reasonable prices and will save a considerable amount of legal fees and litigation on the line. 10.5. Despite the above, no dividends are paid until all shareholder loans and, if applicable interest, as well as all amounts liabilities earned from the company`s lenders have been paid. “The shares represented by this certificate are and are transferable only in accordance with a shareholders` pact of the date – of the shareholders, a copy of which is available at the office of the company secretary.” 10.2. Shareholders expect the company to distribute dividends for each of its fiscal years. (b) Where the company or shareholders exercise an option or right to repurchase or purchase shares of a shareholder under this agreement, the purchase value is costly and may be detrimental to the day-to-day operation of the transaction. A clear agreement will be reduced and facilitate the resolution of disputes. A clear and comprehensive agreement also reduces the need for subjective decision-making by an arbitrator or judge who can give shareholders as much uncertainty and concern, especially minorities.

The MOI is the top ranking of the two documents. However, it is a public document, so some of the issues that shareholders want to govern more confidentially need to be addressed in the shareholders` pact. Any point of the shareholders` pact that is in conflict with the MOI is null and void and not entitled. It is therefore important that both documents be prepared simultaneously. (b) The company`s senior executives are the following shareholders, each remaining in service as long as it owns shares: a company`s shareholder contract can be reconducted at any time, but it is generally applied when the relationship between shareholders and directors changes What about your shares if you die? Now, could you say they go to your spouse and/or your children, but if the shoe is on the other foot, would you want to be in business with your partner`s spouse and/or children? This issue is all the more important in companies where shareholders are active on a daily basis. We believe it is essential that the shareholders` pact (and the MECs) clearly determine what happens to the shares of a deceased, disabled, outgoing or insolvent shareholder. As soon as two or more people decide to participate jointly in the transaction, the shareholders` pact should be the first document to prepare and sign. Often, this document is developed from the beginning or when companies are set up to discuss and finalize aspects of their relationship that might otherwise not have been covered.