A shareholders` pact is a document prepared by a company`s shareholders to explain how the company should be managed, the rights and obligations of shareholders, the fair share price and the relationship between shareholders and directors. The shareholder contract is probably one of the most complex and important agreements you will ever sign. It contains almost everything related to the company`s participation, including vesting, share transfer restrictions, drag along, non-competition, etc. A breach of the agreement can have serious consequences, so make sure you understand. Although a shareholders` pact is not a legal obligation, it may add an additional level of protection to shareholder rights. For businesses with more than one owner, HjulmandKaptain will always recommend that limits be set and that an agreement be reached to regulate the ownership and operation of the business. The definition of these limit values depends on the particular circumstances. As a general rule, specific provisions are either incorporated into the company`s by-law or a shareholder contract is concluded between the owners of the company. The subscription contract is very similar to the terminology sheet and does not contain so many new things. Some things are explained in more detail, such as guarantees and compensation, but it is very simple. In Denmark, the labour market is governed mainly by employment contracts (collective agreements).
The terms of termination must be interpreted in the context of these employment contracts. The working conditions of employees are governed by a special law called the Salaried Employees Act. 16.2 Disputes between the parties, owners and/or the company regarding the shareholder contract or other agreements between the parties, owners and/or the company are settled in reciprocal negotiations. In both cases, the objective will be in part to avoid disagreements between the owners by providing a forum for discussion of topics likely to be the source of further disagreement, and partly by the agreement on how to resolve such a further disagreement. In our experience, the time spent discussing possible differences of opinion and values that need to be prioritized over the reciprocal ownership of the business will generally prevent and reduce the risk of future differences.