Resolution to Adopt Shareholders Agreement: What You Need to Know

As a business owner, you may have heard the term “shareholders agreement” before, but do you truly understand what it means and why it`s important?

A shareholders agreement is a legal document that outlines the rights, responsibilities, and obligations of the shareholders of a company. It typically covers issues such as how profits will be distributed, how disputes will be resolved, and how shares can be transferred.

If you are a shareholder in a company, then having a shareholders agreement in place can be crucial to your protection and ensure that all parties involved understand their roles and responsibilities. Here are some key things to know about adopting a shareholders agreement:

Who Should Be Involved in Drafting the Agreement?

Typically, a lawyer should be involved in drafting a shareholders agreement to ensure that it complies with all legal requirements and properly reflects the intentions of all parties involved. The document should be reviewed by all shareholders and amendments may be made during this process.

When Should a Shareholders Agreement Be Adopted?

Ideally, a shareholders agreement should be adopted at the time the company is formed or as soon as possible thereafter. This will help prevent any misunderstandings or disputes from arising amongst shareholders.

What Should Be Included in a Shareholders Agreement?

The contents of a shareholders agreement will vary depending on the company, but some common provisions include:

– How many shares each shareholder has and the percentage of the company they own

– Rules regarding the sale and transfer of shares

– Procedures for resolving disputes between shareholders

– The process and requirements for board meetings and voting

– Restrictions on shareholders that may be deemed conflicts of interest, such as outside employment or investments.

– A buy-sell agreement, outlining how shares will be sold in the event of a departing shareholder.

How Can a Shareholders Agreement Benefit a Company?

Having a shareholders agreement in place can be beneficial for a company in several ways, including:

– Providing a clear framework for decision-making and dispute resolution

– Reducing the risk of disagreements between shareholders

– Protecting the interests of minority shareholders

– Ensuring that the company is able to operate smoothly and effectively even in the event of unexpected shareholder departures.

In summary, adopting a shareholders agreement is a crucial step in protecting the rights and interests of all shareholders in a company. It is essential to work with a qualified attorney to draft and review the document, ensuring that everyone fully understands their rights and obligations. By doing this, you can help ensure the long-term success and stability of your company.

Calculating stamp duty for tenancy agreements can be a daunting task for many people, especially if you are new to the process. Stamp duty is a tax imposed by the government on documents related to the transfer of property ownership, including tenancy agreements. The amount of stamp duty payable on the tenancy agreement will depend on several factors, including the rental amount and the length of the tenancy. In this article, we will provide you with a step-by-step guide on how to calculate stamp duty for tenancy agreements.

Step 1: Determine the Total Rent Payable

The first step in calculating stamp duty for a tenancy agreement is to determine the total rent payable for the entire duration of the tenancy. This includes all rental payments, including any additional fees such as service charges or maintenance costs.

Step 2: Determine the Stamp Duty Rate

Once you have determined the total rent payable, you will need to determine the applicable stamp duty rate for your tenancy agreement. The stamp duty rate varies depending on the rental amount and the duration of the tenancy.

For tenancy agreements with a rental amount of less than RM2,500 per month, the stamp duty rate is fixed at RM1. For tenancy agreements with a rental amount between RM2,500 and RM5,000 per month, the stamp duty rate is 2% of the total rent payable. For tenancy agreements with a rental amount above RM5,000 per month, the stamp duty rate is 2% of the total rent payable, plus an additional RM250.

Step 3: Calculate the Stamp Duty Payable

Once you have determined the applicable stamp duty rate for your tenancy agreement, you can calculate the stamp duty payable by multiplying the total rent payable by the stamp duty rate. For example, if your total rent payable is RM10,000 per month for a tenancy agreement with a duration of 12 months, the stamp duty payable would be:

RM10,000 x 2% = RM200

Step 4: Pay the Stamp Duty

The final step in calculating stamp duty for a tenancy agreement is to pay the stamp duty. Stamp duty must be paid within 30 days of the execution of the tenancy agreement. You can pay the stamp duty at any stamp duty office or online through the e-Stamping system.

In conclusion, calculating stamp duty for tenancy agreements is a simple process that requires you to determine the total rent payable, the applicable stamp duty rate, and then calculate the stamp duty payable. By following the steps outlined in this article, you can easily calculate and pay the stamp duty for your tenancy agreement and avoid any penalties or legal issues in the future.

The CANZ collective agreement is an important document that outlines the terms and conditions of employment for workers in the creative arts, including writers, performers, and artists. This agreement is negotiated between the Creative Alliance of New Zealand (CANZ) and individual employers, and is designed to ensure fair treatment and compensation for all workers in the creative industries.

One of the key features of the CANZ collective agreement is the establishment of minimum pay rates for workers in various industries. This means that workers are guaranteed a certain level of compensation for their work, regardless of the specific project or employer they are working for. This is particularly important in industries where work can be sporadic and contracts can be short-term, as it helps to provide a baseline of stability and security for workers.

In addition to minimum pay rates, the CANZ collective agreement also includes provisions for things like working hours, holiday entitlements, and other benefits. These provisions are designed to ensure that workers are treated fairly and with respect, and that they have access to the same basic rights and protections as workers in other industries.

For employers, the CANZ collective agreement provides a framework for negotiating with workers and ensures that they are held to certain standards in terms of compensation and conditions. This can help to foster better relationships between employers and workers, and can make it easier for employers to attract and retain talented workers in the creative industries.

Overall, the CANZ collective agreement is an important document for anyone working in the creative arts in New Zealand. Whether you are a writer, performer, or artist, this agreement is designed to protect your rights and ensure fair treatment and compensation. As such, it is essential that workers familiarize themselves with the terms of the agreement and advocate for its continued use and improvement.