Shareholders Agreement - Equal Shares in Company

This is a shareholders' agreement for a 50:50 joint venture company established between two parties. The purpose of this agreement is to govern the relationship between the parties as shareholders in the joint venture company and impose looser or lighter obligations on them. The parties have agreed to form a new company with certain rights and assets and carry out business as per the agreement. The company will be incorporated as a limited company by shares with specific characteristics such as the name, authorised share capital, registered office, and auditors.

The completion of the agreement will take place within ten days after the conditions precedent are fulfilled or waived. This will include the subscription of the parties' shares in cash and the issuance of share certificates. The parties' names will also be entered in the company's register of members as the holders of their respective shares.

This shareholders' agreement is suitable for a relatively simple joint venture and is designed to provide a clear and concise outline of the rights and responsibilities of the parties involved in the 50:50 joint venture company. By signing and returning a copy of the agreement, both parties can ensure a smooth and successful joint venture while avoiding future disputes.

How to use this Document?

Using this shareholders' agreement is a straightforward process, but it's important to ensure that both parties involved thoroughly read the agreement before signing. Here are the steps to using the shareholders' agreement:

1. Establish the Joint Venture Company: The shareholders' agreement should be used when two parties enter into a joint venture to establish a new company.

2. Read and sign the agreement: Both parties should carefully read the agreement and then sign and return a copy. They should each keep a copy for their records.

3. Witness signatures: To avoid any future disputes, both parties may wish to have their signatures witnessed.

4. Record any amendments: If either of the parties wishes to amend the agreement in the future, both parties should agree to do so and record the original agreement and any amendments in writing and sign them.

It's important to have a clear understanding of the terms and obligations outlined in the shareholders' agreement before signing, as this will help to ensure a smooth and successful joint venture for both parties. The agreement should be used as a guide for the joint venture and can be referenced in the future if any disputes arise. By following these steps and ensuring that both parties understand the agreement, the joint venture can be established and run smoothly.