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Shareholders Agreement South Africa Law

The MOI is the top rank of both documents. It is, however, a public document, so certain points that shareholders wish to settle in a more confidential manner must be dealt with in the shareholders` agreement. All points of the shareholders` agreement in conflict with the MOI are null and void and not current. It is therefore important that both documents are prepared simultaneously. Before the new law on companies, people entered into an agreement that contained a clause in the following sense: when setting up a business, whether with family, friends, strangers or business associates, it is too often thought that nothing will go wrong in the future of the company, you are now all good friends, everything is in friendly conditions, and it seems that it will remain in the foreseeable future hunky dory. Unfortunately, most companies that fail due to a merger between shareholders start this way. It is no longer possible (as of May 1, 2011) to adopt a shareholders` agreement that takes precedence over the Memorandum and Companies Act. You may need to amend your company`s memorandum before or at the same time as signing a new shareholders` agreement. In other words, you must first design a memorandum for the company and then design a shareholders` agreement that corresponds to both the Companies Act and the memorandum. You may find that the agreement is no longer needed once you have written a brief.

But this is unlikely, because an agreement always plays a very important role. If you want us to help you quickly and easily create a new shareholders` agreement, simply send us an email with your data and we will contact you. As soon as two or more people decide to do business together, the shareholders` agreement should be the first document to be prepared and signed. Often, working on this document from the beginning or when the company is set up requires the parties to discuss and conclude aspects of their relationship that might not otherwise have been covered at all. It was decided by the shareholders of the company at a meeting attended by a quorum of shareholders (but not by all the shareholders of the company and therefore not by all the parties to the shareholders` agreement) that the MOI would be adopted and that, therefore, the shareholders` agreement would be annulled. We have helped many clients with a shareholders` agreement and developed many smart ways to create them quickly and easily. For example, with questionnaires and templates. Ours are written in plain language and contain the final alternative dispute resolution clause.

Some of the aspects to be addressed in the shareholders` agreement should be the following: under the new law on shares, many wonder whether a shareholders` agreement is now necessary because it cannot oppose the new law on companies or the constitution of the company. . . .

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