Shareholder's Agreement

Does a shareholders agreement override a will??

Does a shareholders' agreement override articles? No, a shareholders' agreement will not override the Articles – if there is a conflict, then the articles will prevail .

Do all shareholders need to sign a shareholders agreement??

Does everyone have to sign a shareholders' agreement? A shareholder cannot be compelled to sign a shareholders' agreement – i.e. each shareholder should enter into it voluntarily .

Is a shareholders agreement legally binding? ?

Once a shareholders agreement has been signed it should be legally binding, provided that it complies with the usual 4 aspects of a contract: offer, acceptance, consideration, and an intention to create legal relations.

What is the purpose of shareholders agreement??

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 i.e the ones holding less than 50% of shares in the company.

What happens if there is no shareholders agreement??

If there is no shareholders agreement in place, for as long as shareholders agree with the way the company's affairs are managed and are happy with the relationships between themselves and the company, then no problems are likely to occur. .