In this context, you will understand that, in certain circumstances, a SHA is a useful instrument that provides a procedural framework for the internal management of the business and determines the cases in which decisions must be made by directors or shareholders. The development of a shareholders` pact should be carried out by an experienced lawyer, able to provide appropriate advice and assistance, tailored to the specific facts of each case. That is what we are trying to ensure in the Vasiliou Act. A shareholder contract (shareholder contract) is a private contract between the members of the company, which contains, among other things, the rules of management and ownership of the company. A SHA regulates this relationship and explains the reasons for the impasse. It is important for shareholders to take a SHA before or after the company`s creation to be aware of their rights and duties to each other. SHA serves as protection and gives more protection and comfort to shareholders. Finally, and not least, the shareholder contract and the statutes should be compatible. What exactly can be included in a shareholder contract? However, it should also be noted that any clause in the shareholder contract that violates a legal provision of the Law Cap.113 is considered invalid after Cyprus Law.In, in addition to this point, a shareholders` pact and the statutes of a company should be compatible. If you need legal advice, which should be included in your shareholder contract, please contact our team. As a general rule, it is best to implement a shareholder pact when you form the company and issue the first shares.
Indeed, it can be positive to ensure that shareholders` expectations of the company are shared. When should the shareholder contract be drawn up? A shareholders` pact is an agreement between the shareholders of a company. The objective is to protect shareholder participation in the company, to strike the right balance between shareholders and to define the rules for the company`s implementation. At Vasiliou Law, we believe that shareholder agreements (SHA) are essential for all companies. They are generally designed to inform all shareholders of their mutual obligations and rights. This agreement is a private contract between the members of the company, which contains, among other things, the rules of operation and ownership of the company. Sha`s will sort things out in the event of a shutdown. Even if they are not required by law, we recommend creating a SHA before each company we integrate.
We offer tailored solutions for shareholder agreements specifically designed to avoid future conflicts between members of a company. SHA will generally look at the indication of ownership of the shares and the power of shareholders/directors to make company decisions, for example. B the date on which the transaction and the company`s assets can be sold.