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Governance and Shareholders Agreement

November 23, 2012 by agribusiness in Business Agreements with 0 Comments
Governance and shareholders agreement is one that is entered into between the shareholders and the company. As the shareholders are investors in the starting of a company, they have every right to know the details about the functioning of the company.

The agreement provides complete details of the financial structure of the company, the proportion of distribution of shares of the company, the board of directors of the company, the bankers to the company, mode of payment of dividend if any and the proportion, the rights and liabilities of the company, termination of business by the company apart from restrictions on the transfer of shares of the company.

The shareholders are the true investors of the company and therefore have every right to know the financial feasibility and good governance policies of the company. This agreement provides for all the clauses that ensure that the shareholders rights are safeguarded at all times during the functioning of the company.

Governance and Shareholders Agreement

Governance and Shareholders Agreement

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