Sample Shareholder Agreement Malaysia

By April 12, 2021 Uncategorized No Comments

Tag Along / Drag Along – A shareholder`s right to require a shareholder who sells his shares that the buyer buys the shares of the former or the right of a shareholder, forcing another shareholder to sell his shares to another buyer under the same conditions Restrictions, who is allowed to become a shareholder, is an important element of a shareholder agreement. Because it is important that all shareholders can work together for the good of the company. Most Malaysian companies need the approval of the directors before the shares can be transferred. However, according to the Board`s decision, this cannot always be beneficial, as it can harm the company`s minority shareholders. Law and jurisdiction in force: the parties that will determine the law to be used in the interpretation of the shareholders` pact CE CONTRAT, dated [AGREEMENT DATE], will be concluded among the following persons, who will form all the current shareholders of [CORPORATION] (“Corporation”),” it should be noted, however, that as a minority shareholder, you should never accept a compromise clause unless you understand the effects of the same. Many shareholder agreements in Malaysia are established with provisions that protect the company`s minority shareholders or those with equal interests. Minority shareholders are those who collectively hold less than half of the value of the company`s shares, while equal-share shareholders are those who collectively hold exactly half of the value of the company`s shares. PandaTip: This section ensures that shareholders have the same expectations about when they can withdraw money from the company and ensure that distributions do not compromise the company`s financial needs. Can the management (directors) of a majority or majority company, for any reason, liquidate the shares of a small shareholder? What is a shareholder contract? A shareholders` pact is a document involving several shareholders of a company, which details the results and concrete measures that are taken in the event of the departure of a shareholder of the company, whether voluntarily, involuntarily or when the company ceases operations. Malaysian Shareholder Pact Lawyer`s Drafting Tips – Do shareholders of a Malaysian company need a shareholder pact? PandaTip: This can be a common topic for shareholder disputes, everyone thinks the other doesn`t work hard enough, always overpaid, etc.