Shareholders' agreements in private companies: the regulation of the relationship between the shareholders of the company inter se

dc.contributor.authorLiebenberg, Graham Barend
dc.date.accessioned2021-11-23T11:13:40Z
dc.date.available2021-11-23T11:13:40Z
dc.date.issued1993
dc.date.updated2021-11-23T11:13:21Z
dc.description.abstractA company and all its members for the time being can, within the limitations imposed by its memorandum, by agreement depart from its articles and such agreement would bind the company and those members 1• Such agreements are frequently entered into between proposed shareholders of a company to be formed or shareholders of an existing company. When these agreements relate to companies to be formed they are known as formation agreements but commercially the agreements are generally known as shareholders' agreements. They usually govern the rights and obligations of the respective shareholders as well as other matters· relating to the affairs of the company. Members of private companies, particular small domestic companies usually enter into shareholders' agreements for various reasons, e.g. where they wish to secure special safeguards for their prospective interests in the company. Thus, a majority shareholder may want to ensure that control of the company will remain with his family, or a minority shareholder may seek special protection. Whilst such special safeguards could be contained in the memorandum or articles of association, which will bind the company and its members, the memorandum and articles I by themselves will not always afford the protection because they are capable of being amended by special resolution. Legislation may override the articles, e.g. section 220 of the Companies Act provides that, notwithstanding anything in the articles, a director may be removed from his office by ordinary resolution. A shareholder, unless he commands at least twenty-six per centum of the voting rights in general meeting, may be unable to prevent an alteration of the articles of which he does not approve. An agreement could prevent the variation of the rights attaching to any class of share in terms of section 102 where a company has more than one class of shares.
dc.identifier.apacitationLiebenberg, G. B. (1993). <i>Shareholders' agreements in private companies: the regulation of the relationship between the shareholders of the company inter se</i>. (). ,Faculty of Law ,Department of Commercial Law. Retrieved from http://hdl.handle.net/11427/35355en_ZA
dc.identifier.chicagocitationLiebenberg, Graham Barend. <i>"Shareholders' agreements in private companies: the regulation of the relationship between the shareholders of the company inter se."</i> ., ,Faculty of Law ,Department of Commercial Law, 1993. http://hdl.handle.net/11427/35355en_ZA
dc.identifier.citationLiebenberg, G.B. 1993. Shareholders' agreements in private companies: the regulation of the relationship between the shareholders of the company inter se. . ,Faculty of Law ,Department of Commercial Law. http://hdl.handle.net/11427/35355en_ZA
dc.identifier.ris TY - Master Thesis AU - Liebenberg, Graham Barend AB - A company and all its members for the time being can, within the limitations imposed by its memorandum, by agreement depart from its articles and such agreement would bind the company and those members 1• Such agreements are frequently entered into between proposed shareholders of a company to be formed or shareholders of an existing company. When these agreements relate to companies to be formed they are known as formation agreements but commercially the agreements are generally known as shareholders' agreements. They usually govern the rights and obligations of the respective shareholders as well as other matters· relating to the affairs of the company. Members of private companies, particular small domestic companies usually enter into shareholders' agreements for various reasons, e.g. where they wish to secure special safeguards for their prospective interests in the company. Thus, a majority shareholder may want to ensure that control of the company will remain with his family, or a minority shareholder may seek special protection. Whilst such special safeguards could be contained in the memorandum or articles of association, which will bind the company and its members, the memorandum and articles I by themselves will not always afford the protection because they are capable of being amended by special resolution. Legislation may override the articles, e.g. section 220 of the Companies Act provides that, notwithstanding anything in the articles, a director may be removed from his office by ordinary resolution. A shareholder, unless he commands at least twenty-six per centum of the voting rights in general meeting, may be unable to prevent an alteration of the articles of which he does not approve. An agreement could prevent the variation of the rights attaching to any class of share in terms of section 102 where a company has more than one class of shares. DA - 1993 DB - OpenUCT DP - University of Cape Town KW - Stock ownership KW - Law and legislation KW - South Africa LK - https://open.uct.ac.za PY - 1993 T1 - Shareholders' agreements in private companies: the regulation of the relationship between the shareholders of the company inter se TI - Shareholders' agreements in private companies: the regulation of the relationship between the shareholders of the company inter se UR - http://hdl.handle.net/11427/35355 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/35355
dc.identifier.vancouvercitationLiebenberg GB. Shareholders' agreements in private companies: the regulation of the relationship between the shareholders of the company inter se. []. ,Faculty of Law ,Department of Commercial Law, 1993 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/35355en_ZA
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Commercial Law
dc.publisher.facultyFaculty of Law
dc.subjectStock ownership
dc.subjectLaw and legislation
dc.subjectSouth Africa
dc.titleShareholders' agreements in private companies: the regulation of the relationship between the shareholders of the company inter se
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelLLM
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