A good relationship between the shareholders of a company is the foundation upon which everything else is built. Shareholders need to discuss the important aspects of their relationship and record them in a good Memorandum of Incorporation (MOI) and a Shareholders Agreement. It is a bit like the process before you get married. Marriage counselling to make sure you and your spouse are on the same page on the big issues (like babies and money) and then record your agreement in an anti-nuptial contract. If shareholders are on the same page, it facilitates a good relationship without disputes and the company often flourishes.
The unfortunate reality is that we often see shareholders not establishing a solid foundation, and ending up with situation that resembles a messy divorce. It is simply very hard to lay a good foundation. The concepts (like pre-emptive rights and resolutions) are tricky and shareholders normally have hundreds of things to do to run the company (like making sales).
This is why we run this practical one day workshop. All shareholders of the company can attend and, at the end of it, you will all be on the same page and have a tailored MOI and Shareholders Agreement for your company that reflects your common understanding.
What do we cover?
- The documents and agreements that regulate the relationship between shareholders.
- Why you need to draft a new MOI.
- Tailoring the MOI for your requirements by discussing things like:
- the purpose and powers of the company,
- the issuing of shares,
- which shareholders are authorised to act for the company,
- shareholder meetings and resolutions,
- who will be directors, when will they meet, what are they liable for and what will they get paid.
- Why you need both a MOI and a Shareholders Agreement to regulate the relationship between shareholders.
- Tailoring a Shareholders Agreement for your requirements by discussing things like:
- who will be employed by the company,
- shareholder restraints,
- how much can directors spend,
- who will be signatories of the company bank account,
- when can shareholders sell their shares,
- what happens if a shareholder dies,
- when will dividends be declared,
- how will disputes be resolved,
- how will the company be funded and shareholder loans,
- should minorities be protected.
- What is going to happen to Close Corporations and why you should convert?
- What has to happen to register, convert or amend a company?
- Take Home Points and Action items
- Be on the same page as your other shareholders.
- Have a tailored MOI and Shareholders Agreement for your company.
- Get answers to your frequently asked questions.
- Be on speaking terms with your other shareholders in a few years time.
We will provide attendees with:
- course notes, including questionnaires and templates,
- a link to an electronic copy of our presentation.
Who should attend and why?
- Anyone who needs an MOI or shareholder agreement – tailored for their specific circumstances
- Shareholders – to enable a good relationship between shareholders
- Members of close corporations – to draft the key documents necessary to convert their CCs
- Legal advisors (corporate lawyers or in-house lawyers) – to provide good legal advice on the related issues
Who is the Presenter?
A practical attorney from Michalsons. We will ensure the attorney is the best person to present the course depending on the type of course, the date, the specific issues and the attendees.
How long is it?
We provide this course in different formats. Public and private sessions can last for anything from 45 minutes, half a day or a full day. We also provide eCourses that can be done via the Internet at your convenience. We welcome enquiries for more information and details.
Public seminars on the Relationship between Shareholders
Our Shareholders Workshops are scheduled in the following cities:
Workshop dates to be advised. If you have a specific query, do not hesitate to contact us.
The cost of one delegate is R3,990 (including VAT). Two or more qualifies for a 10% discount. We will serve refreshments. We limit delegate numbers, so bookings are done on a first come, first served basis. We aim to give practical insights that you can use to be effective. We do not give law lectures! We will refund you, if you do not think you received value.
We are happy to hold the event at your venue. If you want a personal in-house session at your offices, please contact us for a quote.