EXPLANATORY NOTES FOR THE MEMBERS’ AGREEMENT FOR TWO OR MORE MEMBERS
This agreement is for use by members of close corporations (“Members“). We encourage Members to enter into a Members’ Agreement to obviate and to regulate any potential disputes that may arise. It also sets out how Members’ Interests can be sold and ensures inter alia that Member rights are protected should one (or more) of the Members decide to sell their Interests in the close corporation.
The agreement provided is robust, very detailed and transparent, so that all parties are aware of their rights and obligations.
This Members’ Agreement:
- is legally substantive (10 pages in total);
- is bordered;
- has pages numbered;
- is fully justified;
- is typed up using Tahoma font, size 10;
- has been meticulously spell-checked;
- is extremely professional in its appearance;
- has several drafting notes therein for guidance;
- can be printed onto 10 A4 pages. (In the interests of the environment, it is suggested that the agreement be printed back to back on 5 pages.).
This MEMBERS’ AGREEMENT has the following clauses:
- DEFINITIONS AND INTERPRETATION
- EFFECTIVE DATE AND DURATION
- ORGANISATION OF THE CORPORATION
- GOOD FAITH
- MEETINGS OF MEMBERS
- LIFE INSURANCE
- EMPLOYMENT AND MANAGEMENT OF THE CORPORATION
- RESTRAINT OF TRADE
- TERMINATION OF EMPLOYMENT AND VALUATION OF MEMBER’S INTEREST
- PRE-EMPTIVE RIGHTS
- SALES TO A THIRD-PARTY (FORCED SALES)
- FINANCING OF THE CORPORATION AND CLAIMS
- GOVERNING LAW AND JURISDICTION
- DISPUTE RESOLUTION
- DOMICILIUM AND NOTICES
Please read carefully through the agreement and fill in all missing details; in preparing a signature document, please have regard to all the notes we have placed hereon to assist you with the conclusion of a professional, legally binding agreement.
The cost of this agreement is R350, 00 (three hundred and fifty Rand).