A SHA will generally indicate the number of original board members (and often their names and other details) and sometimes the rights of some shareholders to appoint a certain number of board members. Other shareholders, without the right to appoint directors, must vote in accordance with the company`s by-law. In the case of a voluntary transfer in which such a shareholder separates himself from the company, the same procedures – the right in advance and to valuation – may come into force immediately. 5.12 This share transfer agreement may be carried out in more than one language between the parties and, in the event of a conflict between the various translations of this share transfer agreement, the English version prevails. The shareholders` pact should define a complete definition of a “good retiree.” 3. COST OF TRANSFER It is agreed that the registration fee for the transfer of the shares (if any) will be borne by the purchaser. Anti-dilution clauses are generally related to raising capital or issuing additional shares. Dilution is simply a reduction in participation that can be either a dilution of value (economic dilution) or relative property (percentage dilution). The anti-dilution provisions give an investor the right to maintain proportionate ownership in a company by allowing him to purchase a proportional number of shares of each future issue of the company`s shares at fixed or adjusted prices. If there are several shareholders, it is also a good idea to say how shareholders will work together within the company, how they can choose their shares and how to transfer their shares, among many other important provisions. These provisions can be defined in a shareholders` pact that regulates the relationship between shareholders and the entity.

Here, a shareholder pact can offer you an assurance that you do not administer with a shareholder you do not wish to have in the company. The shareholders` pact may prevent or prevent Joe from transferring his shares to others without obtaining the consent of other shareholders or without respecting the terms of the shareholders` pact. A complete anti-dilution click, a form of protection against economic dilution gives an investor the right to buy shares at the new lower price/value and offers the greatest protection to investors, but is the most restrictive when there will be several rounds of fundraising. 5.13 In the event that a clause (or part of a clause) is found to be unlawful or invalidated by a competent court or other legal authority, this has only the effect of nullity and absence of that clause (or part of a clause) and will not invalidate that share transfer contract entirely. When capital is raised, the new shareholder brings in, or when a current shareholder transfers shares to any number of funds (including family members) to third parties, those shareholders must be linked to the SHA. To do so, a SHA should clearly state that any new shareholder or acquirer must be a part of the SHA before receiving the shares. This can be achieved by requiring the purchaser or subsequent purchaser of shares/investor to sign a document in the form of a document by which they agree to be bound by all SHA conditions.