Shareholders Agreement Mauritius

(g) the protection of minority shareholders, z.B the right of shareholders holding at least 5% of the capital to requisition a meeting or the possibility of requesting a minority purchase; (h) the right to issue opinions at a shareholder meeting and to make recommendations to the Board of Directors;i) the right to obtain accounts and audits of the company`s books and records; (j) the right to bring a cease-and-desist action against the management of the company for violation on “fair and just” grounds;k) the ability of shareholders to prevent an “ultra vires” of the company`s statutes;l) from having the approval of 75% of a class of shares in order to be able to change class rights. In Mauritius, Section 9 of the Companies Act 2001 sets out the rights and obligations of shareholders as well as the scope of the corporate secretary. However, the company`s administrative documents remain the main source of shareholder litigation. The characteristic of the company is that once it has been created, it is a separate legal entity from its shareholders. In general, the principle of limited liability means that a shareholder`s liability is limited to a certain amount, which is usually the amount that shareholder has invested or forced to invest in the business. The company itself remains fully responsible for all debts it re-establishes. In particular, unlike the foregoing, corporate law imposes few minimum requirements and most of its provisions are deferred to the social contract governing partner relations. While it is argued that the formalities and corporate declarations required by the Corporations Act make the vehicle heavier and less flexible in administration, the opposite argument is that these formalities and mandatory advertisements provide greater transparency and create greater management accountability to shareholders. There are many ways and means to prevent shareholder conflicts. This will not only facilitate the resolution process, but also make it less time-consuming and costly for shareholders and the company.

Among the points to consider: in the event of a dispute between the shareholders of the company, the first step is to review the shareholder contract. The document indicates whether there is a method of resolving the dispute and specifies the procedures to be followed in the event of a shareholder dispute. (a) a shareholder is not personally liable for a company`s debts under normal circumstances, even if the company is unable to repay its debts;b) in the event of a debt on a company, the recovery is limited to the company`s available assets;c) in the event of the company`s failure, a shareholder loses any amount he has invested in the company; (d) where a shareholder has contractually agreed to pay a certain amount of capital to a company, that shareholder may only be held liable within that amount; (e) a shareholder may only be required to repay a distribution if the distribution has been improperly made by the company; (f) Except as noted above, shareholders may not be asked to participate in the amount of a possible potential, simply because they are shareholders of the company.

Uncategorized