Shareholders Agreement Pakistan
In its article “Shareholder Agreement in Family Companies,” Deloitte points out that an effective participation policy or shareholder pact should include: in the absence of policies, anyone holding shares in your family business could at any time sell these shares to other individuals, including non-family members. Shareholders can also vote to change your company`s board of directors. Similarly, most of your shareholders will ultimately receive a smaller percentage of your company`s shares, which yield lower dividends (if the company distributes dividends). This could create frustration among these minority shareholders and create costly conflicts with family members who maintain their income. In case: Let one of your shareholders withdraw from the transaction, avoids any potential conflict by stating: (i) Any shareholder who plans to transfer shares first proposes these shares at the purchase value, as defined below by the company, for a period of ____jours days, and second, if such an offer is rejected or not by the company within that time, these shares have been offered to all other shareholders in relation to the number of those shares in relation to the number of those shares at the value of purchase. Each of these offers must be made in writing and indicate the number of proposed shares, the name and address of each person proposed for the transfer, as well as the price per share and other conditions under which any transfer in accordance with the transfer must take place; and any such offer may be accepted in whole or in part by the Offeree at any time while the offer is pursued. If the shares are not acquired in accordance with the above offers, the offeror is free to transfer those shares to the person or designated person at the price per share and other conditions above for a period of ______jours after provided that such an purchaser of those shares is subsequently bound to all the provisions of this agreement. (a) Where the company or shareholders exercise, as part of this agreement, an option or right to repurchase or acquire shares of a shareholder, the purchase value is paid to the shareholder whose shares have been cashed or acquired in cash within thirty (30) days after notification to the shareholder concerned. (b) Where the company or shareholders exercise, as part of this agreement, an option or right to cash or purchase shares of a shareholder, the purchase price is immediately paid by the company upon receipt of the proceeds of insurance on the life of a deceased shareholder owned by the company and to be paid to the company. Since your board of directors is responsible for overseeing your company`s business and appointing your CEO and other executives, a voting agreement helps to stay on track with the strategic direction of your business. Your shareholders` pact should therefore include specific provisions concerning: (c) by a written agreement signed by all shareholders to denounce this agreement. (b) The Company employs the shareholders and pays the following salaries to these shareholders: The directors of the company may, from time to time, increase the salaries of shareholders/employees, provided that the remuneration paid to each shareholder or employee for his services in a calendar year is equal to the remuneration paid to any other shareholder during that year, unless the shareholders have unanimously agreed with the partners of the company unanimously or by a written agreement signed by all the company`s executives.