Jv Shareholder Agreement

  • 10 kwietnia 2021
  • Bez kategorii
  • 0

As a loan capital or as equity capital? Loans are a safer „investment” because they can be repaid more quickly and primarily with shareholders` equity and can be secured by the company`s assets. Even if you never have a shareholder pact at the end, it`s important to answer these questions. Only then can you be useful in more detailed questions. And the more you understand each other about these more important issues, the better you will be able to manage change. It is impossible to deal with all possible contingencies in advance. People change. Businesses are changing. The economy is changing! Things happen. Should a shareholder be allowed to transfer shares to certain family members or family trustees? Should there be a period during which some or all shareholders should not have the right to sell their shares? – a period of prohibition? How long? A shareholder pact describes how important business decisions are made and clauses can be tailored to your company`s specific requirements. These include a structure that allows the company to be independently assessed in the event of shareholder disputes, the management of intellectual property by shareholders, directors and key personnel, good and bad end-of-life provisions, the balance of power between majority and minority shareholders, pre-emption rights, along tag rights and drag rights along.

If you have a majority stake, you may be able to ensure that the company`s business and assets are sold as a current business, so that the proceeds of the sale are distributed by dividends or return on investment in a subsequent liquidation between shareholders. Rules of „Russian Roulette”: if a shareholder can give others the opportunity to sell the shares at a price per share that he has designated or to buy his shares at the same price – this helps to spread a reasonable price! Business opportunities for your core business? For example, through licensing or distribution agreements? Should the chairman of a shareholder meeting or board meeting vote? Who should be the president? If other shareholders cannot or do not want to buy, what should happen? Should the company be dissolved? Your decisions on the various issues on this checklist will help you decide what you want to incorporate into a shareholder pact. A joint venture agreement documents the conditions and objectives of a joint venture. A Joint Enterprise Agreement (JVA) is specific to contemporary companies or agreements and is especially beneficial for two or more individuals or companies wishing to retain their own unit. At Lawbase, we understand that unexpected problems can occur when circumstances change in a business, and if that cannot be predicted, it can have serious consequences.

Share This Post