Posted on September 19, 2021
Entered Into Shareholders` Agreement
In this case, the party who has suffered damage may be entitled to damages, but very often, the action complained of, for example. B the allocation of new shares, is perfectly valid for the company and remains binding on the company and cannot be contested, unless the company has also acted outside the provisions of its articles of association or legal requirements. Automatic transfers are usually triggered when a shareholder dies; is convicted of a crime; dissolved or liquidated (if the shareholder is a corporation); declaration of insolvency; has terminated its employment relationship with the company (if the shareholder is also an employee); substantially violates the SHA; significantly violates other above-mentioned ancillary agreements that could harm the company; or, among other things, a breach of an obligation to the company. Shareholders can determine which acts or omissions trigger an automatic transfer and, as long as the SHA is clearly defined, they are binding. . . .