A shareholder pact can also create other contingencies, such as: We can help you by advising and building a shareholder contract as needed. We may discuss the scope of the remedies available in a situation where minority shareholders have been excluded from the company, are otherwise repressed, or where the business is conducted in a manner detrimental to the majority of the company. If you are starting a business with partners with whom you may have a personal relationship, if they are family or friends, you may be reluctant to sign a shareholder contract. What if this step implies that you don`t really trust them as business partners? So you decide to abandon the shareholders` pact in the hope that nothing will go wrong in the future and that you will not lose your relationship and your business in a dispute. A shareholder contract offers a contractual remedy in the event of a breach of its terms. Items can be a way to avoid an offence. It is customary for the terms of a shareholder contract to be included in the articles of a Cypriot company. 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. If you need legal advice, which should be included in your shareholder contract, please contact our team.
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. There is no standard form of SHA under Cyprus law, and it applies to the normal rules of contract law, so it is flexible to meet your needs. Finally, and not least, the shareholder contract and the statutes should be compatible. What exactly can be included in a shareholder contract? 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.