What is Shareholder Agreement

May 13th, 2020

Following is the basic document you are required to sign before company registration :

  • F45 ( consent to act as director )
  • Company Constitution

Scenario :

Aside from the above 2 documents, MR A been asked to sign shareholder agreement .

Question :

WHAT IS SHAREHOLDER AGREEMENT ?

Shareholder Agreement is another internal documents with the additional list of regulation beside company constitution .

And it normally draft out for signature BEFORE company registration to have better clear picture of objective.

Any amendment of this agreement must with the consent of all shareholder .

The preparation of Shareholder Agreement is to protect the shareholder interest instead of company interest .

WHAT IS THE DIFFERENT BETWEEN COMPANY CONSTITUTION AND SHAREHOLDER AGREEMENT ?

Shareholder Agreement is a PRIVATE DOCUMENT and is different from Company Constitution which must registered with ACRA and public can purchase it at any point of time

WHAT IS CONTENT OF SHAREHOLDER AGREEMENT ?

shareholder agreement will consist the following basic provision :

  • Dividend Policy
  • regulation in allotment and transfer of shares
  • shareholder’s list of right

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