Since a shareholders` pact is fundamental to the functioning of shareholders, it is important to carefully consider how the I will relate to the shareholders` pact. Any conflicts should therefore be resolved in the development of a new ME and/or a shareholder contract. The Incorporation Protocol ("ME") is the document that defines the rights, obligations and obligations of shareholders, directors and others within and with respect to a corporation and certain other issues that are not addressed in the new Corporation Act 71 of 2008. It is mandatory between the company and any shareholder, its shareholders and between the company and certain other persons, such as managers. B, in the performance of their duties within the company. Documents that structure and regulate an existing company within the meaning of the old Law 61 of 1973 on the company (i.e. its memorandum and its statutes) will be their ID if the company has not adopted a new ME before May 1, 2013. -The default position for when a director`s meeting can begin is that a majority of directors must be present. This may be acceptable to shareholders, but we can raise this threshold or add that a particular director must be present if necessary; Please note that I am not against the fact that there are other agreements that can be widely standardized and optimized by non-legal practitioners. However, I hate classifying the shareholders` pact and the ME as "standard"; Constructions/legal documents; To pay attention again, you should also be wary of shareholder agreements, apparently tailored and generated automatically, that do not respond to the measure contained in the ME and do not discuss what should happen to the ME, so that companies are not caught with "their (corporate) pants down". We know that enterprise agreements can be difficult and sometimes confusing.
To help you find the perfect way to get through the confusion, we can help you with ME and various other documents. Contact us to learn more about organizing shareholder agreements in and around Durban, and simplify the process as best we can. If a company has used a short standard form of CPIC MOI or if a company is still operating according to the articles and humilities of the previous Corporations Act, shareholders may be put at risk if they have left the management of the company in the hands of the directors, as the amended provisions of the new Corporations Act would not have been amended. Shareholder agreements often require certain types of business to be approved by shareholders in the sense of a special decision. However, the new Companies Act explicitly lists certain issues that need to be approved by special resolution, and the standard MOI model often states that only these issues must be approved by special resolution. This may lead to cases where approval of a specific decision is no longer necessary for issues listed in the shareholders` pact that have not been included in the MOI. Under the old Companies Act, a shareholder contract prevailed over the memorandum and the statutes of a company. That is no longer the case.
The ME is now KING! Shareholders of a company who ignore the latter do so at their own risk. According to De Freitas/Chamdor Meat Packers  JOL 33940 (GJ), when a company proposes to its shareholders the adoption of a new founding agreement, shareholders should carefully consider the provisions of the new creation memorandum, in conjunction with their current shareholder agreements.