The definition of management issues in the shareholder contract reserves the right of existing shareholders to determine issues that are crucial to the group. If these issues are not specified in the agreement, the Board of Directors will be able to modify and manage the group as it sees fit. If you think shareholders are better able to determine issues that are important to the company than directors, you should indicate all the conditions that you consider important to the long-term health of the company. For example, you may need to amend the Constitution if you move to a new business structure or if you react to changes in the law that require you to do so. We can`t register your business – it would be a task for your accountant – but we will often work closely with the accountants to ensure that the company is registered with the right number of shares and that the appropriate stock classes are classified. This means that the shareholder contract and each participation company are consistent and consistent. The procedure for amending a shareholders` pact covering ownership and share transfer issues can be detailed in the document itself or in the statutes. In both cases, the issue must be raised at a board meeting. The majority of directors must agree that an amendment is appropriate and the board of directors must record its decision to amend an amendment as the company`s decision.
If the by-law requires the adoption of the decision by a majority of shareholders, the directors would convene a shareholder meeting at which they would vote on the amendment. The Board of Directors would prepare the amended and amended shareholders` pact, revoke it or vote in favour of its adoption and keep it in the company`s documents. A shareholders` pact defines the distribution of control of the company between shareholders and directors. The Elders/BOSI case also shows that, in certain circumstances, a shareholders` pact may affect the rights of third parties who are not shareholders of the company. A non-recall clause prevents shareholders or former shareholders from getting other shareholders, directors, officers or employees of the group to leave the group or compete with the group.