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A shareholders agreement is fundamentally important to your business. There are numerous issues that can arise that can give rise to serious disputes between shareholders and more often than not, shareholder disputes can jeopardise the entire business. It is also vital that a shareholders agreement is concluded in conjuction with the Memorandum of Incorporation for the Company, particularly as the Companies Act 2008 provides that in relation to certain vital aspects a Memorandum of Incorporation will override and take precedence over a shareholders agreement.
One of the mechanisms for acquiring shares can be by way of subscribing for shares in a company. It is important that the company’s authorised share capital is sufficient and also that the requirements of the company’s Memorandum of Incorporation are complied with.
If a third party stands in for the debt of (for example) a company, then that constitute a suretyship. If the suretyship undertaking is supported by a pledge of shares, then this is the correct document for you. Importantly, the pledge must be accompanied by the pledgee actually holding the share certificate.
This document comprises a straight forward agreement between two shareholders relating to the purchase and sale of shares upon the death of one of the shareholders.
