EXPLANATORY NOTES FOR THE SHAREHOLDERS’ AGREEMENT THAT IS COMPLIANT WITH THE MOI TO BE USED FOR EFFECTING A CHANGE TO AN existing SMME PRIVATE COMPANY MOI OR THE ARTICLES AND MEMO OF ASSOCIATION OF AN EXISTING SMME PRIVATE COMPANY

Please note that if you have not amended the articles and memorandum of association of your SMME Private Company as required by the New Companies Act, it is highly recommended that you do so now as failure to do so places your small business at risk. For more information, please read our article on this site titled MOIs and Shareholder Agreements available here.

This agreement is recommended for use by shareholders in SMME private companies which have effected changes to their MOI using the SMME PRIVATE COMPANY MOI FOR EXISTING SMME PRIVATE COMPANIES that is available for sale on this site, or any other SMME private company MOI that protects shareholders’ rights. This shareholders’ agreement IS NOT compatible with an MOI that is drafted in favour of directors’ rights, for example the short-standard form of CIPC MOI. To understand why, please read our article referred above.

This agreement is slightly nuanced to cater for the fact there may have been existing shareholders’ agreements in place, however it is largely similar in substance to the shareholders’ agreement available for sale here that is to be used when SMME Private Companies are incorporated using the SMME Private Company MOI for sale here.

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 INCLUDES VAT. (Please note that this shareholders’ agreement would have ordinarily cost you R750, 00 (seven hundred and fifty Rand, but is now available to you at a significant discount.)

If for whatever reason, you prefer that a legal practitioner draft your shareholders’ agreement, then please email info@sitllegal.co.za.

For more information on MOIs, shareholder agreements and the setting up of companies, purchasing shelf companies etc., please visit www.sitlbusiness.co.za