The agreement includes all the rights and responsibilities that the shareholders of them and with the company carry during their direct relationship with the company. A shareholders` agreement is a contract between the company and its shareholders. It outlines the rights, obligations of shareholders and provisions relating to the management and authorities of the company. The purpose of the agreement is to protect the interests of shareholders; In particular, minority shareholders, i.e. those who hold less than 50% of the company`s shares. The voting procedure for decisions is also defined in the shareholders` pact, as well as important elements requiring prior written approval of shareholders and/or directors and a resolution adopted by the board of directors. The shareholders` pact was established with the aim of improving activities related to the operation of the company and clarifying and structuring the relationship between the entity and its shareholders at a given time. This contributes to a faster resolution of disputes and leads to an unwavering and fluid operation of the company and its activities. The areas relating to the transfer or sale of shares in the company are generally clearly defined in a shareholders` pact. It is not uncommon for a clause to be inserted, requiring the other party to first propose to sell the shares of the company to the other shareholder and to sell them to another party only if they refuse to buy. 12. A and B agree and undertake not to disclose or directly or indirectly disclose or transmit to third parties any trade or commercial secrets or other secret or confidential information concerning the affairs, business or transactions of the other entity or its customers or customers that may be disclosed, disclosed by them or by the company or acquired by them. This organization is made up of experienced lawyers who use their expertise to design your shareholder`s contract, which covers all legal requirements and the needs of the parties.

The experience and knowledge of our experts can help you include clauses in the agreement that must effectively describe the relationship between the parties and the company and avoid confusion or difficulty in the future. As shareholders are assisted by copies of financial statements, they can track the company`s progress and needs. If shareholders find the need for an influx of funds that they think are beneficial to the growth of the company, they will then discuss the most lucrative source of financing and then move in the direction of their supply. The procedure for obtaining these financings is defined in the shareholders` pact. It is an agreement between the shareholders of the company that describes their relationship between them and the company. “The shareholders have agreed to jointly manage the company which, under the 2013 Companies Act (`company`), takes its capital through shares ploughed by shareholders. Therefore, the shareholder plays an important role in the operation of a business and its relationships must be managed and neglected. A formal document that defines the terms that shareholders respect with the company is what a shareholders` pact is.

In this article, we decipher a shareholder pact format to understand the different parts of a shareholder pact and its importance.