October 2, 2018

Shareholders Agreement

shareholder agreement, shareholders, shareholder, shareholders agreement, article of association, company constitution

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Service Description

What is Shareholders Agreement Malaysia?

First of all, a shareholders agreement, is an agreement among a company’s shareholders that generally describes how the company should be operated. Furthermore, a shareholders agreement outlines shareholders’ rights and obligations. The agreement may also includes information on the management of the company and privileges and protection of shareholders.

When do you need a Shareholders Agreement Malaysia?

The following are the common situation that a Shareholders Agreement is relevant:

(1)New company incorporated with two (2) or more shareholders;

(2)An existing company that is planning to bring onboard new shareholders; and/or

(3)Pursuant to an investment transaction.

 

How to start the process?

The following are 3 easy steps for your to start with the preparation of Shareholders Agreement process:

(1) Request for Quotation and provide relevant information;

(2) Agree to quotation; and

(3) Fareez Shah & Partners will handle the rest.

Information Required

The following are the basic information required to start the drafting process:

(1) Particulars of parties involved (name, NRIC/Passport/Registration Number, address, contract information);

(2) Nature of transaction and deal, such as “Investment of RM500,000.00 from Angel Investor”;

(3) Current and proposed future shareholding ration. As an example – (Mr. A: 51% and Mr. B: 49%)

(4) Commercial terms discussed between parties

If you are still unsure, it is highly recommended that you book a consultation session with our trained lawyers. This will enable you to ask questions such as licensing requirements, legal issues and legal agreements.

The following are other relevant articles which may help further:

1) 3 Types of Business Setup in Malaysia

2) How to Setup a Company in Malaysia (i.e. Sdn Bhd Company)?

3) What are the Annual Compliance Requirement of a Private Limited Company (Sdn Bhd)

4) How to Choose the Right Company Secretary for your Private Limited Company (Sdn Bhd)?

5) What are the Issues faced by foreigner to setup a Company in Malaysia?

Fareez Shah and Partners