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Members Agreement available online.

Members’ Agreement

R550.00

This agreement is for use by members of close corporations (“Members“). We encourage Members to enter into a Members’ Agreement to obviate and to regulate any potential disputes that may arise. It also sets out how Members’ Interests can be sold and ensures inter alia that Member rights are protected should one (or more) of the Members decide to sell their Interests in the close corporation.

The agreement provided is robust, very detailed and transparent, so that all parties are aware of their rights and obligations.

This agreement is also known as an association agreement. Association agreements or members’ agreements “mimic” shareholders’ agreements to a certain extent.

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Product Description

EXPLANATORY NOTES FOR THE MEMBERS’ AGREEMENT FOR TWO OR MORE MEMBERS

This agreement is for use by members of close corporations (“Members“). We encourage Members to enter into a Members’ Agreement to obviate and to regulate any potential disputes that may arise. It also sets out how Members’ Interests can be sold and ensures inter alia that Member rights are protected should one (or more) of the Members decide to sell their Interests in the close corporation.

The agreement provided is robust, very detailed and transparent, so that all parties are aware of their rights and obligations.

This Members’ Agreement:

  • is legally substantive (10 pages in total);
  • is bordered;
  • has pages numbered;
  • is fully justified;
  • is typed up using Tahoma font, size 10;
  • has been meticulously spell-checked;
  • is extremely professional in its appearance;
  • has several drafting notes therein for guidance;
  • can be printed onto 10 A4 pages. (In the interests of the environment, it is suggested that the agreement be printed back to back on 5 pages.).

This MEMBERS’ AGREEMENT has the following clauses:

  1. PARTIES
  2. DEFINITIONS AND INTERPRETATION
  3. RECORDAL
  4. EFFECTIVE DATE AND DURATION
  5. ORGANISATION OF THE CORPORATION
  6. GOOD FAITH
  7. MEETINGS OF MEMBERS
  8. LIFE INSURANCE
  9. EMPLOYMENT AND MANAGEMENT OF THE CORPORATION
  10. RESTRAINT OF TRADE
  11. TERMINATION OF EMPLOYMENT AND VALUATION OF MEMBER’S INTEREST
  12. PRE-EMPTIVE RIGHTS
  13. SALES TO A THIRD-PARTY (FORCED SALES)
  14. SURETYSHIP
  15. FINANCING OF THE CORPORATION AND CLAIMS
  16. DISTRIBUTIONS
  17. CONFIDENTIALITY
  18. GOVERNING LAW AND JURISDICTION
  19. DISPUTE RESOLUTION
  20. DOMICILIUM AND NOTICES
  21. GENERAL

Please read carefully through the agreement and fill in all missing details; in preparing a signature document, please have regard to all the notes we have placed hereon to assist you with the conclusion of a professional, legally binding agreement.

The cost of this agreement is R350, 00 (three hundred and fifty Rand).