Commentary

106 Further finance from the company’s shareholders

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

106 Further finance from the company’s shareholders

| Commentary

(d) Finance during the lifetime of the company

106 Further finance from the company’s shareholders

It is very unlikely that a shareholder investing in a company will be happy to commit himself to provide further capital should the company need it, say one or two years down the line. As a result, it is usual for a private company shareholders’ agreement to specify that none of the parties is required to provide further finance, either as loan or equity capital, in the future.

However, companies often need further capital and it is wise to make some provision for this in the shareholders’

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