Template Shareholders Agreement
A Shareholders Agreement is an agreement between the shareholders of a company, setting out the rights and obligations as between themselves as well as the company.
All South African private companies – (Pty) Ltd
No, but can be edited as needed
Prepared by an attorney with no less than 12 years post qualification experience
Benefits of our Template Shareholders Agreement
- It sets out clear contractual obligations between shareholders of the company
- Reduces the chance of dispute between shareholders
- Assists in prolonging the life of the company post any shareholder departures
- Standardised to fit most shareholder relationships
- Ready to use out of the box
- Adjustable to your needs
- Instantly delivered by email to your inbox
FAQ's regarding our Template Shareholders Agreement
What is our Template Shareholders Agreement?
Our template Shareholders Agreement allows for an inexpensive way in which almost all aspects of the relationship between you and your other shareholders may be regulated, by providing a unique table at the start of the Shareholders Agreement which allows for you to customise parts of the agreement that you would like to include, exclude or vary.
Over many years of preparing Shareholders Agreements, we have hand selected and included in this template Shareholders Agreement, all the best possible provisions to efficiently and effectively regulate the relationship between all shareholders.
What format is the template delivered in and is it editable?
The template is delivered to you in Word document format and is fully editable by you.
What are some of the clauses contained in the Template Shareholders Agreement?
Our unique table at the start of the agreement will allow you to customise the Shareholders Agreement to your needs.
Among others, the template Shareholders Agreement will contain clauses related to the following:
- What the share capital of the company is;
- Which shareholders have been issued what number of shares;
- The company’s dividend policy;
- What happens in the event of a deadlock between shareholders votes;
- How shareholder loans are governed;
- How shareholders may sell their shares, and that they must first offer such shares to the other shareholders first (Pre-emptive rights);
- Tag long and Drag Along rights;
- Process for new shareholders to take shares in the company;
- The forced sale of shares if a shareholder becomes incompetent or breaches the Shareholders Agreement;
- The process to value shares of the company;
- How director remuneration may be determined;
- How disputes between shareholders are determines;
- The necessity to appoint outside experts in certain circumstances;
- Confidentiality provisions.
