Whether in the start-up phase or during operation or both, a company needs access to capital. A shareholders` pact can determine how the company has access to the insane funds and whether the shareholders are responsible for making those funds available in accordance with their relative interest in the company. In addition, if not all shareholders are ready or able to provide funds if necessary, a shareholders` pact may set preferential rates for shareholders who make a contribution or prevent the board of directors from declaring dividends until the shareholder`s loan has been repaid, unless the shareholder has agreed. When a business is created, people will usually prepare a standard business form. However, this Constitution will not cover all the issues that a new company is likely to face. As a general rule, the concrete intentions of shareholders regarding the management of the new entity`s vision are not detailed. As a general rule, a company settlement can be changed by a decision of 75% of the shareholders with the right to vote. On the other hand, a shareholder contract usually requires a unanimous decision to change the shareholder contract. Restrictions that can become shareholders are an important aspect of a shareholder pact.
It is precisely in small businesses that it is important to have shareholders who can agree and make joint decisions on business. Most companies are subject to directors` approval for all share transfers, but depending on the composition of the board of directors, this requirement cannot always be attentive to the interests of minority shareholders. With extensive experience in corporate law, Kalfa Law can help prepare a comprehensive shareholder agreement that best meets your company`s needs. Shareholder agreements should not be complex or lengthy. No matter how small or large your business, a shareholder pact will help protect your biggest assets. The other situation is that the majority shareholder may result in the minority shareholder, so that the majority shareholders are not arrested in a situation where the minority shareholder was not willing to sell his shares. A shareholders` pact would mitigate this situation by preventing the shares from being part of the estate of a deceased shareholder; instead, surviving shareholders will have the right to acquire the shares and make available to the family the cash equivalent of the shares instead of the shares themselves. 6) The existence of a shareholders` pact can help secure financing from banks or creditors and also shows the stability of the business vis-à-vis other potential partners. When a shareholder becomes ill, disabled or unable to act, he or she can no longer be a director or officer, or even make a useful contribution. Nevertheless, it would still be entitled to the distribution of profits per year. A shareholders` pact could mitigate this situation by presenting the distribution of profits according to fair intermediation between a participating active shareholder and a passive shareholder if a shareholder is unable to contribute to the business for a long period of time. The importance of a shareholder pact cannot be underestimated; Let us take the following example: investors take a risk for their investment, because they may not recover the funds they have invested in the company and therefore often ask shareholders to agree on certain provisions to protect their position.