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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

Shareholder Agreements – Part Two

Shareholder Agreements: 2) Distribution of Profits Earnings can be paid out by way of salary, dividends, interest payments on shareholders’ loans, repayment of shareholders’ loans or return of capital. Most companies retain part of their earnings and declare dividends with the rest. However, shareholders may hold very different views on what should be done with [...]

Located in: Corporate and Commercial Law

Shareholder Agreements – Part One

If your company has more than one shareholder, you should have a shareholders agreement. While they can be costly and a pain to negotiate, they anticipate problems, prevent misunderstandings and generally pay for themselves many times over when difficulties arise. In this eight-part blog on shareholder agreements, we will cover areas such as financing, distribution [...]

Located in: Corporate and Commercial Law