Shareholders' agreement

Single majority retains control
14 Reviews
Select support levelCompare
Recommended

Document overview

A comprehensive shareholders agreement for a company controlled by majority shareholder. The agreement gives the minority shareholders their statutory rights but does not give any special protection.
Compliant
Compliant with the latest law
Document propertied
Document properties
  • Length:21 pages (5880 words)
  • Available in:
    MsWordMicrosoft Word DOCXApple pagesApple PagesRTFRTF
watertight guarantee
Backed by our watertight guarantee

If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.

writing in plain english
Written in plain English

We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.

Notes
Guidance notes included

You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.

email
Support from our legal team

Email us with questions about editing your document. Use our Lawyer Assist service if you’d like our legal team to check your document will do as you intend.

Update
Up to date with the latest law

Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.

About this shareholders' agreement

A shareholders agreement is an essential document to confirm the rights of the shareholders, one against another and against other stakeholders in the business, and to set out how the shareholders intend to operate the company. It takes over where company law stops.

This version is drawn for a situation where a single shareholder controls the business of the company. There is provision for the introduction of minority shareholders but the control of the company remains with the majority shareholder

Disputes between shareholders and other stakeholders are expensive and can be disruptive and detrimental to the on-going operation of the business. Having a clear agreement in place reduces the likelihood of disputes and makes resolving any that do occur easier. A clear and comprehensive agreement also reduces the need for subjective decision making by an arbiter or judge that can give shareholders, and particularly minority ones, so much uncertainty and worry.

The document additionally includes provision for transfer of the shares by majority shareholder to several others who collectively own more than he does alone. It minimizes the opportunity for a takeover by minority shareholders.

The law in this shareholders' agreement

The law in this shareholders' agreement is based on both company law and contract law. Within the structure of company law, you can choose the terms that best suit your situation, so you do not need to study any particular law to be able to edit your shareholders' agreement. The agreement is up-to-date and very comprehensive.

When to use this shareholders' agreement

This agreement is suitable for any private company, no matter what its business. It is about rights, power, control and safeguards, not about your business.

A company's shareholders agreement can be redrawn at any time, but is commonly done when the relationship between the shareholders and the directors changes

Shareholders' agreement features and contents

No other shareholders' agreements for sale on the Internet are in plain English or are so comprehensive in their cover of legal issues and the drafting explanations and tips supplied. Net Lawman's slogan "Real law, in plain English" is as true of this document as of any others.

In many areas, we give you complete alternative paragraphs and explain in the notes when each will be the most suitable for you.

This document contains over twenty commercial paragraphs as well as what you might call technical legal provisions. You can choose which are suitable for your needs. Many are based on our practical experience as solicitors of dealing with shareholder disputes.

Contents

  • obligations of the company to the shareholders (the company is also a party to the agreement);
  • how shareholders will maintain their rights if they are not present at meetings;
  • roles of directors and actions by the company or a director which require shareholders' consent: controls and redistributes power between shareholders so that majority shareholders cannot force decisions;
  • new shareholder rights and restrictions: even if he is a trustee in bankruptcy;
  • how to deal with new intellectual property;
  • transfers of shares and rights of pre-emption: when allowed, under what conditions and to whom;
  • exit strategy: the hidden bomb if neglected;
  • life insurance;
  • publicity about the deal;
  • confidentiality;
  • use of a shareholders own assets in the business;

Other versions of this shareholders agreement

We offer a number of agreements for shareholders. This one is based on our standard version, adapted to strengthen the control of a single member.

Sample shareholders' agreementFront cover

Recent reviews

Great Service
14 July 2024
excellent as usual
Fathima Rajah
Great Service
04 March 2019
Excellent!
Darryl Nunes
Clarify payment options
14 May 2018
Excellent service and excellent service. Only one thing bothering is the payment gateway. When a document is advertised for R499 I don't want to pay R522.58
Hennie Nel
Read all 14 reviews

Choose the level of support you need

Document Only

Complete the document template yourself using our guidance notes
R499.00
  • ok This document
  • okDetailed guidance notes explaining how to edit each paragraph
Most Popular

Lawyer Assist

Support from our legal team during and after editing
212 Reviews
R4,498.00
  • ok This document
  • okDocument with guidance notes explaining how to edit each paragraph
  • okUnlimited email support - ask our legal team any question related to completing the document
  • ok
    Review of your edited document by our legal team including:
    • reporting on whether your changes comply with the law
    • answering your questions about how to word a new clause or achieve an outcome
    • checking that your use of defined terms is correct and consistent
    • correcting spelling mistakes
    • reformatting the document ready to sign
© 1999 - 2024 Net Lawman Limited.
All rights reserved