Commentary

103 Summary of preliminary drafting points

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

103 Summary of preliminary drafting points

| Commentary

103 Summary of preliminary drafting points

Standard articles will often provide inadequate protection for minority shareholders, and therefore a private company’s documentation will need to be tailored to fill this gap. This will usually be achieved by making certain amendments to the standard articles and supplementing them with a carefully drafted shareholders’ agreement. The shareholders’ agreement also provides a more certain and private method of regulating the rights and duties of the shareholders in their dealings with one another and with the company.

Care should be taken in doing this to ensure that neither the articles nor the shareholders’ agreement attempt

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