A shareholder pact can also provide for other contingencies, such as. B: The development of a shareholders` pact should be carried out by an experienced lawyer, able to provide appropriate advice and assistance, tailored to the specific facts of each case. That is what we are trying to ensure in the Vasiliou Act. If you need legal advice, which should be included in your shareholder contract, please contact our team. While Punt v Symons for the assertion, The fact that AA provisions that restrict the legal powers of a company are invalidated, that the position on a sha, to which the company is also involved and which imposes obstacles to its legal powers, deserves further consideration of such an agreement, will imply the need to respect, on the one hand, the incity of the legal powers of the company and, on the other hand, the contractual freedom of the shareholders (in the manner and conditions they deem appropriate). In the absence of a shareholders` pact, shareholder/director disputes are settled by the agreements provided by the statutes. A shareholder contract offers a contractual remedy in the event of a breach of its terms. Items can be a way to avoid an offence. When should the shareholder contract be drawn up? A shareholders` pact is an agreement between the shareholders of a company. The objective is to protect shareholder participation in the company, to strike the right balance between shareholders and to define the rules for the company`s implementation.
The principle of duomatic would also apply in the context of a SHA if the shareholder agreement on a SHA case (subject to the possibility that this issue could come into force at a general meeting) is indeed as binding as a decision taken at a general meeting of the company. This was the case in Cane v Jones  1 WLR 1451, where a provision of a SHA amounted to an amendment to the AA, regardless of the statutory requirement that required a particular resolution. It is customary for the terms of a shareholder contract to be included in the articles of a Cypriot company. Finally, and not least, the shareholder contract and the statutes should be compatible. However, it should also be noted that any clause in the shareholder contract that violates a legal provision of the Law Cap.113 is considered invalid after Cyprus Law.In, in addition to this point, a shareholders` pact and the statutes of a company should be compatible. SHA will generally look at the indication of ownership of the shares and the power of shareholders/directors to make company decisions, for example. B the date on which the transaction and the company`s assets can be sold. There is no standard form of SHA under Cyprus law, and it applies to the normal rules of contract law, so it is flexible to meet your needs. As a general rule, it is best to implement a shareholder pact when you form the company and issue the first shares. Indeed, it can be positive to ensure that shareholders` expectations of the company are shared.
We are happy to support you by advising you and building a partner`s contract according to your needs. We may discuss the scope of the remedies available in a situation where minority shareholders have been excluded from the company, are otherwise repressed, or where the business is conducted in a manner detrimental to the majority of the company.