What is the meaning of the Shareholder’s Agreement?

Shareholder Agreement defines the relationship between a particular company and its shareholders. It also describes the outline for the functioning of a company and also identifies the rights, privileges, protection, and obligations of the shareholders.

Therefore, the intention behind formulating shareholder’s agreement is to ensure that shareholders must be treated fairly and their rights are protected.

What is the meaning of the Shareholder Buyout Agreement?

A shareholder buyout agreement is a kind of prenuptial agreement between the company and shareholders that deals with situations where a question regarding the purchasing or buying out of the shares is decided in the event of the death of any shareholder and also in the case wherein the departing of any shareholder situation arises. Therefore, the below-mentioned questions are decided through a buyout agreement;

  • Whether the company must buy out the shares in the event of the death of any shareholder and also in a case wherein departing of any shareholder situation arises
  • Question regarding determining the value of shareholder’s interest
  • Deciding on the terms of payment in case of a buyout
  • And many more

Thus, the object behind Shareholder Buyout Agreement is to ensure that unwanted buyers can be prohibited from gaining interest in the company. Moreover, it also determines the procedure regarding disposing of ownership in the company by a shareholder.

What is the deed of termination Shareholders Agreement?

The deed of termination Shareholders Agreement comes into play when parties to the shareholder’s agreement want to terminate their agreement. There are numerous reasons for which parties to shareholders agreement want to terminate their agreement, but generally, the parties terminate the agreement when a new investment is brought into a company and it becomes necessary for the existing parties to terminate the old agreement and form a new agreement.

Therefore, it is important to have all the parties signatory to the deed of termination which are parties to the existing Shareholders Agreement. In simple terms, it means the parties which have signed the shareholder’s agreement must sign the deed of termination.

EuroMea Legal Services has a highly qualified team of lawyers and legal consultants which have extensive experience in drafting Shareholders Agreements. Our law firm works in a highly proficient manner in order to secure the interest of our clients.

Law is a double-edged weapon and can easily be used from both sides. Thus it depends upon you to choose the best legal services in hard times so that your interest can be protected.

EuroMea Legal Services is always committed to providing the best advice and results to our clients. Therefore, in case you need any suggestions or help in relation to the matters related to Shareholders Agreements you can contact us freely. Our team is fully committed in order to perform their duty and in delivering the best results.