Company Constitutions v Shareholders’ Agreements
When people go into business together it’s common for them to enter into a Shareholders’ Agreements to govern how they will own and administer their company. Our preference is to use a tailored version of the company’s ‘Constitution’ as the primary instrument to regulate the affairs of a company. Our reasons are:
How do pre-emption rights work?
Most Shareholder Agreements, Constitutions and Partnership Agreements provide ‘pre-emption’ rights. These are rights that require someone wanting to sell an interest in the enterprise, to first offer the interest to the other equity holders. But they do not necessarily require the majority to buy.
Who gets to choose who goes on your board?
Most people think the directors of their company are appointed by a majority of shareholders. But often this is not the case. Discover the full picture.