Memorandum and Articles of Association is a publicly accessible document

It is a matter of fact that the Articles of Association is a publicly available document and therefore can be viewed freely by any third party interested in it. It is therefore advisable that provisions that are confidential are kept private. This may be achieved by the creation of a Shareholders Agreement working side by side with the Articles of Association whereas all confidential aspects and matters set so that to keep private from the public.

Although a Shareholders Agreement is not a legal requirement, it provides certainty and security for existing members of the company as well as clarity of corporate structure and business functioning to potential investors. It works as a safeguard for keeping confidential matters private and undisclosed from outsiders of the company as opposed to publicly available Articles of Association.

More specifically a Shareholders Agreement secures the following:
  • Reduces the conflict of interests’ risk between members of the company
  • Protecting the rights and interests of minority shareholders
  • Providing clarity and certainty to potential investors
  • Providing additional security to members of the company concerning pre-agreed terms by outlining the legal position of the agreement
  • Excluding the possibility of one shareholder having a detrimental effect on the others when corporate structure changed
  • Protecting the deceased shareholders’ families’ interests
  • Providing the grounds and responsibility level on which important decisions are made and etc.

Request more info

    error: Content is protected !!