It is important to regulate the shareholders` agreement, because not all shareholders who are part of the company are equal. The agreement must be drawn up taking into account all the people who differ from each other and who have a different opinion on the subjects concerned. And whether or not these people may agree. This depends, as described above, on the number of shareholders and their respective holdings. However, the main provisions to be taken into consideration for admission are those concerning: a subscription contract is a step to becoming a partner in partnership. A transaction document describes the details of a proposed transaction.3 min read Many entrepreneurs who create startups want to design a shareholders` agreement for the first parties. This should clarify the original intentions of the parties; In the event of a dispute, as the company matures and changes, a written agreement can help resolve the issues by serving as a point of reference. Entrepreneurs may also wish to include who can be a shareholder, which happens when a shareholder is no longer able to actively hold their shares (e.g.B. is disabled, dies, resigns or is dismissed) and who has the right to be a member of the board of directors. For a clearer understanding, it is necessary to consider the importance of the Put option.
A call option, as understood in common parled language, is a sell option. A put option is an investor`s exit/liquidity option that allows an investor to compel the promoter/shareholder of the company to purchase its shares, either in whole or in part, according to an assessment agreed between the parties. A put option has become a popular exit option in commercial practice and has been expressed as a put option clause in Share Holders Agreement (SSA) or Share Subscription Agreements (SHA). This right to transfer is not legally the right of a shareholder, but a contractual agreement between the parties. Therefore, if the SSA or SHA does not offer a put option, the investor/shareholder cannot exercise this right to sell. The only way to challenge the legality of the Put option is whether a contract that offers the investor the opportunity to sell its shares to the organizer in exchange for consideration set on a later date on which performance will take place at a later date constitutes a futures contract prohibited by the Securities Regulation Act. 1956. For a comprehensive understanding of this problem, it is necessary to examine the concepts of limitation of the transfer of shares, the meaning of the futures contract, the importance of the cash delivery contract, the applicability of SCRA to limited liability companies, listed companies, unlisted public limited companies. For simplicity of presentation, this issue is dealt with from the point of view of (a) limited liability companies, (b) publicly traded public limited companies and (c) unlisted public limited companies. Another concern is where a minority shareholder could transfer their shares to anyone.
This could create problems for other shareholders, especially when the sale takes place to a competitor or other person that the other shareholders do not wish to associate with the company. But conversely, forcing an unhappy shareholder to stay can cause more problems than having a new unknown shareholder interested in the company`s success. All shareholders must agree for business to prosper. To overcome these problems, shareholder agreements often contain rules relating to the sale and transfer of shares – to whom shares can be transferred, under what conditions and at what price. . . .