Commentary

101 The need for consistency between the articles and the shareholders’ agreement

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

101 The need for consistency between the articles and the shareholders’ agreement

| Commentary

101 The need for consistency between the articles and the shareholders’ agreement

The parties may decide to make a few essential amendments to the company articles, but to encapsulate the main bulk of the relevant provisions in a separate shareholders’ agreement. It is obviously desirable in any company that the various documents governing the relationship of the parties should be consistent with one another. In particular, it is very important to ensure that the terms of the shareholders’ agreement are consistent with those of the company’s articles. Inconsistency is a recipe for confusion and, if a dispute arises, may give

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