By fulfilling a loyalty obligation, the new shareholder becomes a party to the existing shareholder contract and is bound to all the terms of this agreement. Since this document does not contain “reflection” in English law, it must take the form of an act to ensure that it is legally enforceable. One of the consequences of using a document is that the way it is signed (or “executed”) is important: a person is required to sign the deed in the presence of an independent witness and we recommend that the full name and address of the witness be written in the document, as stated. For more information on signing documents, please see the signed contracts. It is a short document that can be used when an individual (or company) becomes a shareholder in a company whose shareholders have signed a shareholder contract. The new shareholder adheres as a party to the existing shareholders` pact. Information about the signature of documents and documents can be found on our contract signing page. Article 1 specifies the obligation in principle of the new shareholder, namely that he is bound by the terms of the shareholder contract from the moment he becomes a shareholder of the company. He also states that a copy of the shareholder contract was provided to him so that he would know what he was committed to. Anyone participating in a shareholder contract.
Who can use this shareholder contract? This shareholder pact is suitable for two people who create a limited company to manage a new operation in which each of them… Each shareholder pact will have conditions that govern the rights and obligations of shareholders. When a new shareholder is introduced, existing shareholders want that person (or company) to be subject to the same rules. The signing of loyalty should therefore be a condition for becoming a shareholder. Three paragraphs whose main objective is for the new shareholder to commit to be bound by the terms of the existing shareholders` pact. It is quite common for a shareholders` pact to have a condition that, when a shareholder transfers its shares in the company to someone who is not already a shareholder, through the sale or donation, the purchaser in his place becomes a party to the shareholders` pact.