As a general rule, it is preferable to implement a shareholders` pact when the company is created and issues the first shares. Indeed, it can be positive to ensure that shareholders` expectations of the company are shared. At this stage, shareholders should, as far as possible, be in the same way about what they expect and receive from the company. If the differences of opinion between investors at this stage are too strong to enter into a shareholder pact, it will probably sound a warning about the nature of their future working relationship. QuoVadis` liability to persons for damages resulting from this CP/CPS, certificate holder contract, applicable contract or related agreement, whether in contracts, guarantees, wrongdoing or any other legal theory, subject to the actual harm suffered by that person. In strict legal theory, the relationship between shareholders and those between shareholders and the company is governed by the company`s constitutional documents. [Citation required] However, for a relatively small number of shareholders, such as in a start-up, it is common in practice for shareholders to complete the constitutional document. There are a number of reasons why shareholders want to complete (or take turns) the company`s constitutional documents: many entrepreneurs who create start-ups will want to develop a shareholder contract for the first parties. The objective is to clarify what the parties originally intended to end; In the event of a dispute, when the business becomes due and changes, a written agreement can help resolve the problems by acting as a reference point. Entrepreneurs can also include who may be a shareholder, which happens when a shareholder is no longer able to actively hold his shares (for example. B is disabled, dies, resigns or is fired) and is allowed to become a member of the board of directors.
If a majority shareholder wants to sell its shares but a minority shareholder is not willing to give its consent, it is important to include a provision that requires that shareholder to sell its shares. This is often referred to as the “Drag Along” provision. This will then allow the majority shareholder to realize his investment at a time and price that he deems reasonable. Of course, the price and other payments for the sale must be fair to all shareholders, including minority shareholders. 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. In addition to describing the characteristics of a shareholder pact, we also have a simple model of shareholder contract available for download.