The shareholders` agreement aims to ensure that shareholders are treated fairly and that their rights are protected. Shareholder agreements are legally binding contracts and should be prepared by a lawyer to ensure that they comply with state laws and can be brought to justice. 6.2. Refund. The repayment of shareholder loans by the company is made if the shareholders agree that there are sufficient funds to pay the loan. Loans to shareholders are paid in order of priority, with the oldest loan paid first, unless the shareholder waives such amortization for the first payment. The content of a shareholders` agreement depends on the company and the shareholders, but it is usually addressed to: 5.3. Regular distributions of net income. Subject to any profit reserves and legal requirements related to company distributions, the company`s net profit may be distributed quarterly to shareholders in relation to the number of shares held by the company. These distributions are approved by all shareholders. Shareholders may choose not to receive a distribution, but rather to offer the money as a loan to the company. Shareholders` contracts are different from the company`s articles of association.
While the articles of association are mandatory and the company`s activity regime is in place, a shareholders` agreement is optional. This document is often from and for shareholders and exists certain rights and obligations. Perhaps the most useful is for a company to have a small number of active shareholders. A shareholders` agreement can protect minority shareholders. One way of doing this is to apply the provisions that must be approved unanimously for certain decisions. As long as a shareholder does not agree, the decision is not approved, regardless of the amount that shareholder owns in the company. As we can see, the shareholders` agreement offers a flexible tool to manage the risks and growth of a company. Strategic management of the different facets of a shareholders` agreement, such as governance measures and the transfer of interests, is an effective way to create a single framework for shareholders and the company. When drawing up a shareholder agreement, it should be ensured that it is tailored to the interests of all parties concerned with regard to the immediate and long-term future of the company. The main purpose of a shareholders` agreement is to amend the provisions of a State`s company law in order to better meet the needs of shareholders. The agreement can cover a large number of issues, but it is generally used to limit the transfer of shares, specify the organizational structure of the company and provide a means of settling shareholder disputes.
All matters not covered by the shareholders` agreement are governed by State company law. . . .