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.
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.
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