Shareholder Agreement Malaysia SampleRomuald Franck - MSc, Scrum Master
A shareholder agreement is an essential document for both small and large businesses in Malaysia. It is a legal document that outlines the terms and conditions of the relationship between shareholders of a company. The agreement serves as a guide on how the shareholders will work together in the best interest of the company.
A shareholder agreement in Malaysia should include specific clauses that protect the interests of shareholders and the company. In this article, we will provide a sample of a shareholder agreement in Malaysia that can serve as a guide for companies.
1. Introduction: The introduction should state the names of the shareholders and the name of the company. It should also describe the purpose of the agreement.
2. Share ownership: This section should detail the shares of ownership held by each shareholder. The document should also state whether the shares are public or private.
3. Directorships: The agreement should detail the minimum and maximum number of directors required for the company. The document should also detail how the directors will be appointed or removed.
4. Voting rights: The shareholder agreement in Malaysia should detail the voting rights of each shareholder. The document should specify the number of votes each shareholder has, the percentage of shares needed to pass a resolution, and the process for voting.
5. Share transfer: The agreement should detail the process for transferring shares from one shareholder to another. The document should outline the process for selling shares, the restrictions on transferring shares, and the approval process for transferring shares.
6. Dividend policy: This section should detail the policy for distributing dividends to shareholders. The document should specify the frequency of distribution, the percentage of profits to be distributed, and the process for distributing dividends.
7. Dispute resolution: The shareholder agreement should include a provision for dispute resolution. The document should detail the process for resolving disputes between the shareholders. The process should be impartial and unbiased.
8. Confidentiality: The shareholder agreement should include a provision for confidentiality. The document should specify the information that is considered confidential and the process for sharing confidential information.
9. Termination: The agreement should detail the process for terminating the agreement. The document should specify the conditions under which the agreement will be terminated and the process for terminating the agreement.
In conclusion, shareholder agreements are essential documents that protect the interests of shareholders and the company. The above sample agreement provides a guide to companies in Malaysia on the essential clauses that should be included in a shareholder agreement. Companies should customize the document to meet their specific needs.