Joint Venture Series: Shareholders Agreement (Ordinary Shares), Constitutional Rights (Preference Shares)

The objective of a founding or investing in a business is to exit with profit. Outside trading on the stock exchange, it is key to ensure your Shareholders Agreement (in the case of Ordinary Shares) and/or Constitutional rights (in the case of Preference Shares) guarantee your right to profit. Where the court system is efficient and corruption-free, where a duly signed the Shareholders Agreement and Constitutional rights will be enforced in a court of law, the certainty of result of litigation and hazard of being awarded costs against you, will discourage parties from protracted litigation in favour of settlement.

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Share purchase agreement

This is the second of a three-part series on joint ventures, shareholder rights, and acquisitions. This instalment is a brief commentary on selected legal aspects

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