Voluntary disposals generally relate to the sale of existing shares of an existing shareholder through a simple sale, sale, charge or collateral; this may include direct or indirect transfers to bankruptcy directors, creditors, directors or liquidators. 5.4 Each contracting party heres all the necessary powers and authorizations to enter into this share transfer agreement. Another aspect of the transfer provision that should be considered, among other things, is insurance. In order to ensure that all or a substantial portion of the purchase price of a shareholder`s shares is available, it is possible (but not mandatory) to purchase and acquire life insurance for a shareholder. For example, after the death of an insured shareholder, the company – which would be the sole owner of the policy – would collect the cash to be paid as a result of the death of such a shareholder and would pay as much as necessary to repurchase shares at the purchase price and retain the surplus. Here, a shareholder pact can offer you an assurance that you do not administer with a shareholder you do not wish to have in the company. The shareholders` pact may prevent or prevent Joe from transferring his shares to others without obtaining the consent of other shareholders or without respecting the terms of the shareholders` pact. Economic dilution reduces the value of an existing shareholder`s investment and occurs when shares are issued at a price that lowers the average value per share. The anti-dilution economic rules protect investors from “low rounds”, the risk of new shares issued by the company at a lower price than the investor at the time of the investment. If future capital increases are at higher levels, anti-dilution provisions are unlikely. A shareholder who retires as a “good outgoing” usually receives the market value of his shares. Market value is usually determined by a third party, most often by an accountant/financial advisor or lawyer.
Sometimes the shareholders` pact will be mandatory and define the valuation approach to be followed. The most common approaches include asset-based valuations or “earnings before interest, taxes, depreciation and amortization (EBITDA).” It is an indicator of a company`s financial capacity and can therefore help determine the value of a company`s shares. Authorized transfers are often transfers of shares from an existing shareholder: to another existing shareholder; A company controlled by an existing shareholder or to the parent of an existing shareholder (e.g. B spouse, child, parent, spouse of such parent or trust formed for the benefit of an existing shareholder or his family).