A Shareholders' Agreement or Founders' Agreement is a document that regulates relations among the shareholders/founders of a company and how the business and affairs of a company are run. It sets out the shareholders' rights and obligations, regulates how the shares in the company can be sold, provides appropriate protection for minority shareholders, and defines how important decisions are to be made.
This document is a contract between the company and the shareholders/founders. Hence, this document needs to be signed by:
- all shareholders/founders of the company on behalf of themselves; and
- director(s) and/or authorised signatory of the company on behalf of the company.
In the example below, John Doe, Jane Doe, and Bob Wong are the shareholders of Jane Doe Limited and want to sign a Shareholders' Agreement. Who will sign the Shareholders' Agreement?
- John Doe and Bob Wong will each sign once as a shareholder of Jane Doe Limited.
- Jane Doe will sign twice, once as a director of Jane Doe Limited and once as a shareholder of Jane Doe Limited.