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Shareholder Agreements – Part Four

Shareholder Agreements: 4) Restrictions on Share Transfer Shareholders generally want some control over who the other shareholders will be. At the same time, this expectation needs to be balanced with allowing shareholders to leave the company when they choose, and for a fair price. A shareholder agreement normally allows shareholders to sell to outsiders only [...]

Located in: Corporate and Commercial Law

Shareholder Agreements – Part Three

Shareholder Agreements: 3) Participation in management and protection of minority shareholders Without a shareholder agreement, a simple majority of the directors can decide on major decisions such as: • major capital expenditures; • borrowing or granting security for capital expenditures; • distributing profits; • remuneration of key employees; • contracts between the company and shareholders; [...]

Located in: Corporate and Commercial Law