There are a few key elements that need to be included in a shareholder pact to make it understandable and valid. The basics are: 8.3 The transfer of shares is also considered a transfer of shares to holding companies. The transfer of shares of holding companies must therefore, as far as possible, follow the provisions of the shareholder contract. The transfer of shares or shares of a holding company to a company owned solely by or to a party itself is not subject to this provision, provided that the company or party adheres to the shareholder contract. External financing and associated conditions are generally determined by a company`s board of directors and must be linked to all guarantees in a SHA. In this case, the SHA may stipulate that such external financing must be obtained without guarantee or support from shareholders (unless everyone gives their prior consent). However, this flexibility can lead to conflicts between a shareholder contract and a company`s constitutional documents. Although the laws differ from country to country, most disputes are generally resolved as follows: when a shareholder converts his preferred shares into common shares, the conversion price of his preferred shares is reduced to reflect the issue price of the new cycle. This means that a preferred shareholder can convert his preferred shares at a lower price. When the shareholder holds common shares, additional shares are often issued after the new cycle to make a whole.
In both cases, the investor receives more shares for his initial investment to ensure that his or her interest in the company is not diluted. 9.1.3 If neither party makes an offer, one of the parties may request the liquidation of the business. In the event of a disagreement between the liquidator and the liquidator is appointed by the legal auditor of the company`s accounts. 9.1 If the parties fail to agree on issues that can reasonably qualify a certain majority, consensus or other way of viewing a situation as a „death block,“ the contracting parties will follow the following procedure: a shareholder pact (sometimes called a shareholders` pact in the United States) is an agreement between shareholders or members of a company. In practice, it is analogous to a partnership agreement. It can be said that some legal systems do not properly define the concept of a shareholders` pact, regardless of the definition of the particular consequences of these agreements. There are advantages to the shareholder agreement; to be precise, it helps the company maintain the absence of advertising and maintain confidentiality. Nevertheless, some drawbacks should be taken into account, such as the limited effect on third parties (particularly assignees and stock buyers) and the change of agreed items may take time.