Shareholder’s Agreement (SHA)

Special Rate for VentureHaven Clients, from S$880

In collaboration with our partner ACRES ADVISORY, which specialises in transactions and restructuring, we provide guidance to shareholders by assisting to tailor a shareholders' agreement in line with their business requirements.

Shareholder’s Agreement (SHA)

A Shareholder’s Agreement (SHA) is a supplement to the company’s constitution and is highly recommended for companies with More Than One Shareholder. It sets the tone on the governance of the business and protects the interests of the shareholders (founders and investors) by regulating the powers and rights of the stakeholder.

Benefits

  • Can only be altered by mutual agreement of all parties
  • Sets out the rules on management and governance not covered by the company constitution
  • Agreement is private and not open to the public
  • Attracts investors by granting greater investor protection and specific investor rights
  • Provides co-founders and key staff a strong incentive to commit and grow the business

Key Terms for SHA

  • Voting Rights
  • Rights to Appoint Director (for Significant Minority)
  • Rules on Issuance and Transfer of Shares
  • Pre-Emptive Rights and Anti-Dilution
  • Drag-Along, Tag-Along Clause
  • Exit Clause
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