Varying A Shareholders Agreement

In those circumstances, account must be taken of the fact that a director has the primary duty to act in the best interests of the company and that he cannot inferior his obligations in that regard. This point must be taken into consideration when a part of a shareholders` agreement is or becomes a shareholder. Automatic transfers are usually triggered when a shareholder dies; is convicted of a crime; dissolved or liquidated (if the shareholder is a corporation); declaration of insolvency; has terminated its employment relationship with the company (if the shareholder is also an employee); substantially violates the SHA; significantly violates other above-mentioned ancillary agreements that could harm the company; or, among other things, a breach of an obligation to the company. .

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