A shareholder pact allows you to plan the worst to run the business. Within that, you can explain what would happen if certain events were to occur, whether it was the sudden departure of a key founder or the withdrawal of a source of funding. Investors can postpone discussion of a shareholder pact in order to stick to the important role of creating the company. Although they may intend to return later, when there is more time, the opportunity cannot arise and something else is always a priority. Even if they resume it later, shareholder expectations and feelings about the transaction may have diverged by then, making it more difficult for them to accept the terms to be included in the shareholders` pact. This typical shareholder contract is a contract between shareholders (and the company) that defines the rights and obligations of shareholders (and the company) and defines how the company should be managed. The download contains two models: the first can be used between existing shareholders of a start-up or a historical company; and the second can be used if new shareholders are introduced through an investment round. As a minority shareholder and with a shareholders` pact that requires all shareholders to approve certain decisions, you will ensure that you have a say in important decisions affecting the company. This could be a decision: In addition to the general terms you can expect in any shareholders` pact, our proposal contains a series of “good practice” clauses, such as a section on the secrecy of certain information. The proposal also contains clauses covering the rights of shareholders on their actual shares, for example. B the rights of initial refusal and resale during the issuance or exchange of shares between the parties. No shareholder can sell a majority stake unless the same deal is offered to the minority. Shareholder agreements generally set the payment period during which dividends must be distributed by dividends and the percentage of profits distributed in each fiscal year.
Directors can also determine the amount to be recommended in the form of a dividend. A more detailed dividend distribution policy is generally included in the company`s by-statutes. Discussing these issues from the outset when setting up a new business or the arrival of a new shareholder, as well as its written registration, limits the flexibility of a single member so that the plans of other shareholders are not taken into account by stating that he has never been involved in such decisions. Thinking ahead about issues that might be sensitive and, therefore, creating differences of opinion will help avoid future disputes. An agreement for a company controlled by a single shareholder director, probably the founder, who holds the largest individual stake. Other minority owners retain all legal rights, but have no special protection. When it comes to starting a business with family or friends, it`s easy to think that nothing can go wrong in the future. You may assume that if you trust yourself, you do not need to enter into a shareholder pact — you might think that asking for a shareholder pact makes you think you don`t trust or respect your new trading partners.