It is essential that shareholders of each company sign a shareholders agreement – preferably at the beginning of the relationship. Read our article Mother of all disputes to find out why. Essentially, a shareholder agreement prevents disputes and conflict in the future. Do you need a new Shareholders Agreement? Find out about shareholders agreements and the new Companies Act and how to review an old shareholders agreement.
Amend a Memorandum of Incorporation
The Companies Act commenced on 1 May 2011 and therefore it is no longer possible (since 1 May 2011) to adopt a shareholders agreement that prevails over the Memorandum and new Companies Act. You need to amend the Memorandum (or draft a new one) when drafting a new shareholders agreement. Every Shareholders Agreement template that existed before May 2011 has become obsolete. Our template is up-to-date with the latest laws.
Related Guidance
- Questions every shareholder should answer
- Mother of all disputes
- Need a new Shareholders Agreement?
- Shareholders Agreements and the new Companies Act
Tags: business partnership agreement, partnership agreement, shareholder agreement, shareholders agreement
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