Shareholders Agreements South Africa

Unfortunately, most companies that fail due to a merger between shareholders start this way. A shareholders` agreement is used to regulate the relationship between the various parties in their capacity as shareholders and, often, in their positions as directors of a company. The frequent errors of thought that cause the delay in the implementation of shareholder agreements are as follows: this version is subscribed for a situation in which an individual shareholder controls the activities of the company. The introduction of minority shareholders is planned, but control of the company remains in the hands of the majority shareholder It is no longer possible (from 1 May 2011) to adopt a shareholders` agreement that will prevail over the Memorandum and Companies Act. You may need to amend your company`s memorandum before or at the same time as signing a new shareholders` agreement. . . .