Shareholders don`t run the company, directors do, which is why it`s important that directors represent the interests of shareholders. Shareholder agreements can describe who can appoint directors, how to appoint them, and what percentage is needed to remove a director. The right to appoint a director gives you control over how the company is run and gives you the certainty that there will be a director on board who understands your position as a minority shareholder. Differences of opinion or collapses of relations are commonplace in the economy. One of the main objectives of shareholder agreements is to ensure that there is a mechanism to deal with such situations. This can be done through the implementation of some of the conditions of sale of interest mentioned above (for example. B sell/call option, shot-gun clause, etc.). Other methods include designating methods of dispute resolution such as mediations before the commencement of legal proceedings or the requirement of arbitration proceedings. The shareholders` agreement should specify what will happen in the event of an acquisition. The agreement may contain a clause stipulating that in the event of a buyback offer and the majority of shareholders who wish to sell their shares, you can «mark» and sell your shares at the same price as a minority shareholder. The sale of company shares can be done for various reasons (company exit strategy, disciplinary issues, making investments for cash flow purposes).
Ultimately, it depends on your willingness to push your stake as a percentage in the company, if you play an important role beyond pure participation (for example. B if you work in the company or contribute elsewhere), the timing of your application (it will be much more difficult to impose veto rights if this has not been agreed from the outset) and the meaning of other shareholders. Due to their nature, shareholder contracts perform a large number of functions….