Question 1

What is a Shareholders Agreement?

Accepted Answer

A Shareholders Agreement is a contract between the shareholders of a company that governs their relationship and sets out their rights and obligations. It operates alongside the company's MOI to provide additional protections and clarity on matters like share transfers, decision-making, and exit mechanisms.

Question 2

Is this template compliant with South African law?

Accepted Answer

Yes, this template is drafted in accordance with the South African Companies Act and common law principles. It includes provisions that complement the statutory framework while providing shareholders with contractual protections beyond what the Act requires.

Question 3

Can I customize this template?

Accepted Answer

Absolutely. The template features a customization table allowing you to specify share capital, dividend policies, transfer restrictions, pre-emptive rights, tag-along/drag-along provisions, and deadlock resolution mechanisms specific to your company.

Question 4

What key clauses are included in the template?

Accepted Answer

The template covers: share capital and ownership; dividend policy; share transfer restrictions and pre-emptive rights; tag-along and drag-along rights; deadlock resolution; shareholder loan provisions; director appointments; reserved matters; dispute resolution; and confidentiality.

Question 5

Who should use this template?

Accepted Answer

This template is essential for any company with multiple shareholders who want to regulate their relationship beyond the MOI. It's particularly important for startups, family businesses, joint ventures, and any situation where shareholders need clear rules for decision-making and exits.

Question 6

What format is the template delivered in?

Accepted Answer

The template is delivered in Microsoft Word format (.docx), enabling all shareholders to review and negotiate terms before signing.

Template Shareholders
Agreement

How it works

Purchase & Download

Customize

Sign & Use

Download a Sample

Why This Shareholders’ Agreement Works

Board & Decisions

Consent/Reserved Matters

Transfers & Pre‑emption

Leavers & Drag/Tag

Information Rights

Dividends & Disputes

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Template ShareholdersAgreement