Cancellation Of Shareholders Agreement

By 13 septembre 2021 Non classé

Following the judgment in De Freitas v Chamdor Meat Packers [2015] OJL 33940 (GJ), when a company proposes to its shareholders the adoption of a new instrument of incorporation, shareholders should carefully consider the provisions of the new instrument of incorporation, in combination with a recent shareholders` agreement available to them. In the event of a contradiction between the two documents, shareholders should endeavour to harmonise the provisions before the adoption of the new instrument of incorporation, as such a situation may lead to the accidental termination of the existing shareholders` agreement (or, at the very least, the repeal of the conflicting provisions of the shareholders` agreement). Even though it is not a legal obligation to have a shareholders` agreement, it is highly recommended to do so, as it protects shareholders from potential conflicts. .