Morne Patterson – Important Sections to a Shareholders Agreement Which You Should Know
A shareholders agreement is an agreement between the shareholders of a company that outlines the rights, responsibilities, and obligations of each investor. This agreement is essential to ensure that shareholders are protected and that the company is managed in accordance with their mandate. In this blog I will highlight the key clauses that every shareholders agreement should include.
Company and Shareholders
The agreement should begin by outlining the company and the shareholders involved. This section should include the name of the company, the date the company was formed, the purpose of the company, and the name of each shareholder.
Capital Contributions
This section sets out the terms and conditions for each shareholder to contribute capital to the company. Contribution does not necessarily need to be in the form of cash and regularly includes intellectual property such as software.
Voting Rights