The good news is that even if your business is already operational, it`s not too late to enter into a shareholder contract. As you can see in the Susan/Nancy situation, a shareholder pact can be invaluable for every company, regardless of size or industry. It doesn`t need to be complex and can be adapted to your company`s specific situation. It is just like those who enter a `pre-nup` relationship property, it can pay to set rules in advance. The majority of New Zealand`s private companies do not have a shareholders` pact, but in many cases the cost and time required to obtain a shareholders` pact, compared to the fear of shareholder litigation, could prove to be extremely profitable. The first thing to do is to understand what exactly a shareholder contract is. A shareholder contract is in fact a contract between the shareholders of a company. It regulates shareholder relations and explains what will happen in certain situations. A shareholder contract is not mandatory and is a confidential document between the contracting parties. This agreement is not intended for service companies in which shareholders are active in the business, with the emphasis on returning regular revenues to those shareholders on the basis of their corporate contribution, i.e. companies in which shareholders and partners are active in a professional services company. Our shareholder pact model – service companies are a better starting point for this type of business.
No other shareholder contract for sale on the Internet is as comprehensive in its coverage of legal issues, and the development of explanations and advice provided. In many areas, we give you complete alternative paragraphs and explain in the notes when everyone suits you best. Of course, one or more shareholders who control more than 50% of the voting shares still control each company. This agreement reinforces this position. The following case study illustrates some of the benefits of a shareholder pact. A shareholder pact is an essential document that exists. It takes over where corporate law ceases – and confirms the rights of shareholders against each other and against other stakeholders in business (including directors). It outlines how shareholders intend to operate the company.