After paying for their shares, shareholders have the right: as we can see, the shareholders` pact offers a flexible instrument to manage the risks and growth of a company. Through strategic management of the various facets of a shareholder pact, such as governance measures and interest transfer, it is an effective way to create a single framework for shareholders and the company. When developing a shareholder contract, it should be ensured that it is tailored to the interests of all parties involved in the context of the immediate and long-term future of the company. It also describes the fundamental responsibilities of shareholders to the group: things like how shareholders deal with business opportunities, restrictions on the sale of shares and what will happen if the group needs more money. Since directors, either directly or through subordinates, are ultimately responsible for day-to-day activity, choosing one`s own choice to sit on the board of directors can be a strong influence that a shareholder can have on the company. However, the directors owe the company a fiduciary duty and not to the shareholder who appointed it. In addition, the provisions of a shareholders` pact may prevent majority shareholders from deciding the entire board of directors. This allows minority shareholders to be represented in proportion to their share holding or in total equality if they agree to have decisions taken unanimously. Boards of directors inform voting shareholders of the date and location of a general meeting. You cannot do this for more than 60 days and no less than 21 days before the meeting date. For example, if the meeting is to take place on May 20, the meeting`s submission should be sent no earlier than March 22 and No.30 at the latest. If directors wish to change the share categories described in the articles or one of the rights assigned to a class of shares, it is necessary to change the articles (see change to your article) of the company. A special special decision from shareholders is required.

In certain circumstances, which warrant changes in the class of shares and rights, shareholders in each class or group may have the right to vote separately as a class or group. An individual can be a shareholder, director and employee of a company at the same time. The shareholder, who is also a director or public servant, assumes the duties and responsibilities of directors and executives while acting as such. The hard rights of the first refusal require licensees to first solicit a good faith offer from a third party before the shares are offered to other shareholders of the company. This can complicate the sale of shares, as few third-party investors want to try to make an offer to get nothing. The flexible rights of the first refusal require the selling shareholder to first make an offer to other shareholders and, if they refuse to buy, the shares can then be offered to third parties. It should be noted that the right of refusal applies to all shareholders or to a subset of all shareholders (i.e. the founders). If your company`s by-statutes do not expressly prohibit it, electronic voting is allowed. A prerequisite is that the vote can be reviewed without knowing how each shareholder voted. Unless otherwise stated in the statutes, a company may authorize shareholders to participate in the meeting electronically.