Enforcement Of Shareholders Agreement

Apr 9, 2021 von

We can develop a shareholder contract to reflect all your needs and manage all shareholder requirements. We can do this at the beginning of the business or, if your business has grown or is growing, once it has established itself and continues. There are many reasons why the parties choose to use a shareholders` pact instead of relying solely on the provisions of the company`s statutes and/or the 2006 Corporations Act, of which: in Hungary, as in many other legal orders, the statutes constitute the contract of social relations between shareholders. Shareholders are free to establish provisions of the statutes under the Companies Act (IV/2006) and other laws, provided that: in general, the SHA is a by-product of transactions in which shares of one company are acquired by another entity, the parties, including the acquirer, executing a SHA system to enter into agreements, including, but not limited, to: a) management and property rights, such as the appointment or removal of directors; (b) a description of how the business should be operated; (c) the shareholder sale of shares and pre-emption rights; (d) protection of minority shareholders and other decisions. Under the standard provisions of contract law, any party to the shareholder contract may seek a declaration, damages, injunction or order on a specified benefit, if the agreement does not provide for a dispute settlement provision, in order to prevent other parties to the agreement from acting against its terms. However, the effect of an interim measure may indirectly affect the company`s ability to exercise its legal right to modify its articles, capital, structure or other similar protected provision. While these acts are sometimes found to be valid when other shareholders can prove that the complaint caused them a loss, they may invoke a breach of contract against the instigator of the offensive act. One of the most common methods of proving a lawsuit caused a loss to a shareholder by arguing that it resulted in a depreciation of the shareholders` shares.

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