For example, a transfer of shares that is not permitted by the company`s articles of association is often not legally valid. It can therefore be very useful, when entering into a shareholder agreement, to review and, if necessary, amend the articles of association of the company. Here we talk to Der Commercial Litigation Solicitor, Lisa Rivers, about the purpose of a shareholders` agreement and what will happen if the provisions of the agreement are breached. Shareholder agreements are binding only between the parties, i.e. they are binding only on the signatory parties and in principle have no impact on third parties. The parties to the agreement are bound by the commitments made, which means that the agreement is directly opposed to these partners. For this reason, a breach of a shareholder`s agreement gives rise to actions for failure to fulfil obligations. Spanish law offers various remedies against the violation of a shareholder`s agreement. . . .
Violation Of Shareholder Agreement
October 13, 2021