The Shareholders’ Agreement regulates the relationship between the shareholders, and determines issues such evaluation models, constraints in the buying and selling of shares, and parameters for the decision making process. This is ideally set up during the start-up of the business, but is often neglected, possibly creating major crisis when there are changes in the ownership of the business. The Shareholders’ Agreement is drawn up together with the Memorandum of Incorporation to ensure the alignment of the two documents, and to ensure that both documents are consistent with the Companies’ Act.
