Get Your Shareholder Agreement at RM 1390
When it comes to running a business, there are a lot of important legal documents that need to be in place. One of these is the shareholder agreement. A shareholder agreement is a contract between the shareholders of a company that outlines their rights and responsibilities.
It is important to have a shareholder agreement in place because it can help to prevent disputes between shareholders and can provide clarity on what each shareholder’s rights and responsibilities are.
A shareholder agreement should be customized to the specific needs of the company and its shareholders. It is important to seek legal advice when drafting a shareholder agreement to make sure that it is properly tailored to your company’s needs.
Frequently Asked Question
What Does a Shareholder Agreement Include?
A shareholder agreement should include provisions on the following topics:
- Voting rights of shareholders
- Dividends and distributions
- Sale or transfer of shares
- Rights and liabilities of shareholders
- Dispute resolution procedures
It is important to seek legal advice when drafting a shareholder agreement to make sure that it is properly tailored to your company’s needs.
What are the applicable laws?
The Companies Act 1965 and the Companies Commission of Malaysia (CCM) are the main pieces of legislation governing shareholder agreements in Malaysia.
What is the difference between a shareholders’ agreement and an article of association?
A shareholders’ agreement is a contract between the shareholders of a company that outlines their rights and responsibilities. An article of association is a document that sets out the rules and regulations governing the internal management of a company.
Is Shareholder agreement mandatory in Malaysia?
No, a shareholder agreement is not mandatory in Malaysia. However, it is highly recommended to have one in place to prevent disputes between shareholders and to provide clarity on what each shareholder’s rights and responsibilities are.
When should you review your shareholder agreement?
You should review your shareholder agreement at least once every three years or whenever there are changes to the shareholders, such as when someone buys or sells shares.
Can a shareholder agreement be terminated?
Yes, a shareholder agreement can be terminated. However, the termination of a shareholder agreement may have implications for the company, so it is advisable to seek legal advice before terminating a shareholder agreement.
If you are a shareholder in a company or if you are thinking about starting a company, contact us to learn more about shareholder agreements and how we can help you.