Rules for shareholders must be recorded properly in writing before collaboration commences in the shape of a joint venture.
Drawing up a shareholders’ agreement
Various matters should be considered when drawing up a shareholders’ agreement. These include the following:
- What rights do shareholders have, or do they not have?
- What course of action should be taken if a manager who is also a shareholder dies or becomes work-disabled, or appropriates the funds or simply does not want to continue working?
- How do the parties wish to act with respect to dividend policy and additional cash payments if extra capital is needed?
- Can one shareholder force another shareholder to join him in selling in the event of an exit (‘drag along’)?
- Can one shareholder force another shareholder to sell his own shares as well in the event of an exit (‘tag along’)?
- Do the parties wish to agree on dispute settlement regulations and if so, in what way (e.g. a ‘Mexican shoot-out’ or a ‘Russian roulette’)?
Ploum can provide you with legal assistance
At Ploum, our specialists can advise you on the laying down of agreements relating to collaboration, and we can also help you during the relevant discussions and the subsequent drawing up of a shareholders’ agreement.