Simple Shareholders Agreement South Africa

10.6. Shareholders declare dividends and obtain payment within 30 days of the Company`s financial statements. This agreement is appropriate for any private company, regardless of its activity. It`s about rights, power, control and security, not your business. 6. (a) Where the company or the shareholders exercise, as part of this agreement, an option or right to exchange or buy shares of a shareholder, the purchase value is paid to the shareholder within thirty (30) days of notification to the shareholder concerned whose shares have been repaid or acquired in cash within thirty (30) days of notification to the shareholder concerned. 10.2. Shareholders expect the company to distribute dividends for each of its fiscal years. The law of this shareholder contract is based on both corporate and contract law.

In the corporate law structure, you can choose the conditions that best fit your situation, so you don`t have to study a particular law to be able to deal with the shareholder contract. The agreement is current and very comprehensive. 8.4. All repayments of the company to shareholders are made in proportion to their respective credit accounts, but to the extent that a shareholder`s loan account exceeds its proportionate share on the basis of its shareholding in the company, that surplus is repaid in the first place. The company`s senior executives are the following shareholders, each of whom remains in possession of shares: this agreement expressly provides that the rights and obligations invoked are in addition to all rights and obligations invoked in the company`s bylaws and in the 1973 Corporations Act. No shares may be issued except through a rights offer proportional to all shareholders on that date. If a shareholder does not respect his rights, he is deemed to have renounced the other shareholders who follow their rights in the same proportions as their rights. Shareholders accept that if a shareholder does not have the financial means to follow his rights, the obligation to issue preferential rights does not constitute unjustified, unjust or unjust conduct. 10.5. Despite the above, no dividends are paid until all shareholder loans and, if applicable interest, as well as all amounts liabilities earned from the company`s lenders have been paid. 4.2. The provisions of this Agreement prevaltely in any contradiction between the provisions of this Agreement and the Memorandum or Statutes of the Society.

Anything that is not part of the Founding Memorandum (ME) must be covered by the shareholders` pact. Every aspect that is not agreed in this way often has to be settled by litigation that is very expensive and time-time-free – something that could have been avoided. If the company splits and the principles of the first management of the company and the remaining shareholders in the company are not established, the transaction could be destroyed by the departure of the parties.