As the business develops, it may be necessary to make decisions regarding the acquisition of new land, the purchase of real estate or the repayment of a loan loaned on behalf of the company. The shareholder contract provides the protection you need against the decisions of a few members of the company. While it may seem tedious to sketch out any situation the company may find itself in, the clearer the shareholder contract, the easier it will be to make decisions. The first point of contact for an angry shareholder is the shareholders` pact. This is imposed like any other treaty. As a general rule, it confers additional rights beyond what is provided for in the company`s statutes, but cannot be amended or amended by a majority without the agreement of all parties. A well-developed agreement should provide for the impact on shareholder relations and corrective action that can be taken in the event of a shareholder or director`s default. As a general rule, this would involve the right to terminate the contract and/or to require majority shareholders to acquire their shares in the event of a breach by a director. Such offences should be of a fundamental nature, without exception, and many agreements generally require notification requiring the use of the offence before action can be taken with respect to such an offence. An innocent party must be extremely careful when considering whether to trigger a termination or purchase our minor or trivial infringement clause in order to prevent it from violating the shareholder contract itself.
In general, shareholder disputes are claims of a minority non-executive shareholder on the conduct of directors, who are the majority, either individually or collectively. As a manager, you must manage the company in accordance with the statutes and corporate law. The articles outline the responsibilities and powers of directors, how decisions are made, etc. Your corporate law obligations are to promote the success of the company while treating shareholders fairly. Under the Corporations Act, a director is required to perform all of his duties with the degree of diligence and diligence that a reasonable person would exercise if, in the same circumstances, he was the director of the company. A director of a company is usually appointed by a shareholder and appointed by the shareholders who agree to appoint him to the position of director.