Sometimes a company can avoid writing a deal if a person has such a dominant majority of the shares that they effectively control the business, because the majority of that person makes the vote almost useless. However, if you have a large number of shareholders, a meeting with feedback from all of them could be chaotic and ine ways. Here`s what you can do instead: write a proposed project before the meeting, which may even be a project that covers the most important decisions. You can use the project to facilitate discussion with your shareholders. On the basis of this discussion, you will be able to conclude the agreement. For example, the statutes require the company`s rules to tender for shares, including the amount of shares that can be issued and the types of shares to be issued. The shareholders` pact dictates in principle the rights and privileges of shareholders as soon as they hold shares in the company. In most countries, registering a shareholder agreement is not necessary for it to be effective. Indeed, it is the greater perceived flexibility of contract law in relation to corporate law that provides much of the rationale for shareholder agreements. There are also some risks associated with implementing a shareholder agreement in some countries. A shareholders` pact contains a date, often the number of shares issued, a capitalization table (or « cap ») that lists the shareholders and their share of the company`s ownership, the possible restrictions on the transfer of shares, the pre-emption rights of the current shareholders for the acquisition of shares (in the case of a new issue to maintain their share of ownership) and the terms of payments in the event of a sale. Writing your shareholder contract is a very important part of setting up your business. As you can see, there are dozens of details to consider, and you should receive contributions from all your shareholders.
However, this flexibility can lead to conflicts between a shareholder contract and a company`s constitutional documents. Although laws differ from country to country, most conflicts are generally resolved as follows: a SHA may contain terms that are contained in the statutes; However, a SHA is generally larger and offers more protection to shareholders. There is no standard form that adapts HSAs flexibly to the specific needs of shareholders. Articles and SHAs are often complementary. In many legal systems, the statutes can only be changed by the adoption of a special decision (75% or more of the shareholders present and voting at a general meeting). However, a SHA often requires unanimous approval of its revision, but may also require approval by a super majority (a number of votes far more than half of the voting shares, but less than 100%). Shareholder agreements are different from the company`s statutes. If the statutes are mandatory and the management of the company`s activity, a shareholders` pact is optional.