{"id":52918,"date":"2024-01-15T20:43:11","date_gmt":"2024-01-15T12:43:11","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/?page_id=52918"},"modified":"2024-11-30T01:17:48","modified_gmt":"2024-11-29T17:17:48","slug":"drafting-and-reviewing-of-shareholder-agreement","status":"publish","type":"page","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.3ecpa.com.sg\/services\/legal\/drafting-and-reviewing-of-shareholder-agreement\/","title":{"rendered":"Drafting and Reviewing of Shareholder Agreement"},"content":{"rendered":"

Want to Learn More on Drafting and Reviewing of Shareholder Agreement? You\u2019ve Come to the Right Place!<\/h2>\n

\"DraftingShareholders or stockholders are the biggest players in a company. Stockholders own at least one share of the total company stock also known as equity. In a company, the shareholders are immensely important as they are the major investors who funded the company with financial help. Therefore, it goes without saying that shareholders have a massive fiduciary responsibility and play a vital role in the makings of a company and driving it forward. A shareholder agreement<\/a> is not made compulsory by law, but it is imperative that we recognise the significance and the seriousness of having the said agreement. If you want to learn the art of drafting and reviewing of a shareholder agreement, read on!<\/p>\n

 <\/p>\n

What Do Shareholders Do?<\/h3>\n

Shareholders decide and vote on taking decisions in the company. The members of shareholders have the right to inspect the company\u2019s records, sue any misdeeds that have been committed by the corporation and a rightful claim on the proportional allocation of proceeds if a company decides to dissolve and liquidate.<\/p>\n

Majority shareholders own 50% or more in the company, whereas fewer minorities are those parties who own less than 50%. Being a shareholder presents many benefits to one, such as increased stock value and lucrative dividends. However, shareholders are also susceptible to losing their investments, in the case of stock markets gone wrong.<\/p>\n

\"3E<\/p>\n

 <\/p>\n

What Should Be in a Shareholder Agreement?<\/h3>\n

The drafting and reviewing of shareholder agreement are fairly simple. In the agreement, be sure to include essential details such as rights, business plans<\/a> and blueprints, dividend policies, capital structure and finance update, board composition and more. Apart from that, the agreement covers the responsibilities of all parties involved, such as appointing directors who will act on behalf of the shareholders in the best interest of the company.<\/p>\n

Among the things to be included in the agreement are:<\/p>\n