Shareholder agreements, as the backbone of shareholder relationships, form a vital part of any company’s potential for stability, success and profitability. But what happens if your shareholder agreement conflicts with your company’s MOI (Memorandum of Incorporation)? Worse still, what if either of them are at variance with the Company’s Act? Which of the three takes precedence?
We discuss how our law addresses those questions, with reference to a case in which shareholders fell out over whether the appointment of directors, and shareholder relationships generally, should be governed by their shareholder’s agreement or by the (subsequently adopted) MOI.
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