A shareholders agreement suitable for the set up of a relatively simple joint venture - a company with equal shareholding. This agreement is drafted for 3 parties and imposes stricter / tighter obligations on the parties.
The Parties have agreed to form a new jointly-owned company (the Company) which will acquire certain rights and assets, and otherwise be established and carry on business, in the manner set out in this Agreement.
The Parties have agreed that their relations as shareholders in the Company shall be governed by the terms of this Agreement.
As soon as reasonably practicable after the date of the Agreement, the parties shall cause the Company to be incorporated as a company limited by shares with the following characteristics:
(a) the name shall be as per the Agreement or such other name as the parties may agree;
(b) the Memorandum and Articles of the Company shall be substantially in the agreed form;
(c) the authorised share capital shall be as per the agreement and divided into equal proportions between the parties;
(d) the registered office shall be at the address as per the agreement;
(e) the auditors of the Company shall be as per the agreement.
Completion shall take place within ten (10) days after the Conditions Precedent are fulfilled or waived when the following events shall take place, namely:
(a) The Parties shall subscribe unconditionally for the respective Parties Shares in cash at par; it shall pay for the shares in cleared funds for the account of the Company;
(b) The Parties Shares shall be issued to the respective Parties (including the initial shares subscribed for by respective Parties on incorporation of the Company);
(c) The names of the Parties are entered in the Company's register of members as the respective holders of the shares subscribed by them and that share certificates are issued to the Parties for those shares.
joint venture agreement,