Corporate Agreement (Shareholder Agreement)
Law firm AGTL offers services for the preparation of a corporate contract, as well as a shareholder agreement. The purpose of these documents is to regulate the relationships of members of the company/shareholders.
Double quality control
The price includes the preparation of the Corporate Contract (Shareholder Agreement):
- Under the terms of the client’s own policy;
- or according to a checklist provided by the Consultant.
A corporate agreement/shareholder agreement is an agreement of participants/shareholders and/or creditors and/or other third parties in which parties undertake to exercise their management rights in a certain way, or refrain from exercising such rights, including:
- Vote in a certain way or in a coherent manner on pre-determined issues (e.g. the election of a particular person or individual by the executive branch at the suggestion of a particular shareholder);
- To acquire or sell shares in the Company to specific persons in certain cases and at a predetermined price or formula (e.g., one party to the shareholder agreement undertakes to sell its stake to another party or parties when the Company’s economic condition is reached, or in case of non-achievement or otherwise, at a price predetermined or directly dependent on the economic condition of the company, or according to a predetermined formula);
- To act in a predetermined way in the event of the inability to make an agreed decision on certain issues of the Company’s activities (the obligation to act according to the instructions of the negotiator, the redemption of the share of the second party of the dispute and other ways of eliminating the dedlocks);
- Take pre-agreed actions (e.g., additional funding for the Company in certain cases);
- To have the so-called “liquidation” privilege when leaving the Company (additional cost to the share of the outgoing person);
- To be able to oblige minority parties – parties to such a Treaty – to sell their shares to the new owner of the entire Company in the event of such a decision by the majority.
- Different conditions.
In certain cases, a breach of the Corporate Contract (Shareholder Agreement) may result in a monetary fine or a court order obliging the guilty party to comply with the terms of such an agreement.