Shareholders Agreement Sample With Articles Of Association
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FAQ
Articles of association are always public (they can be viewed at Companies House) while shareholders' agreements are private contracts that do not need to be shared outside of the company, unless the company is itself a party to them.
What to Think about When You Begin Writing a Shareholder Agreement. ... Name Your Shareholders. ... Specify the Responsibilities of Shareholders. ... The Voting Rights of Your Shareholders. ... Decisions Your Corporation Might Face. ... Changing the Original Shareholder Agreement. ... Determine How Stock can be Sold or Transferred.
What's the difference between articles of association and a shareholders' agreement? The main difference is that the articles are a statutory requirement which is a public document whilst a shareholders' agreement is a private contract.
The articles of association bind the company to follow the rules they set out by law, creating a contractual obligation between the company, its shareholders and the shareholders themselves. Shareholders' agreements also confer contractual obligations on those to whom they apply.
If the shareholders' agreement is silent on a specific issue, the standard articles of association will take precedence. However, if the shareholders' agreement has a 'supremacy clause', it would supersede the articles.