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Family Business Shareholders Agreement
"I need a Family Business Shareholders Agreement for our third-generation manufacturing company in Malaysia, with specific provisions for integrating professional management while maintaining family control, as we plan to bring in our first non-family CEO in January 2025."
1. Parties: Identification of all family member shareholders and the company
2. Background: History of the family business and purpose of the agreement
3. Definitions and Interpretation: Key terms used throughout the agreement, including family membership definitions
4. Share Capital and Shareholders: Current shareholding structure and classes of shares
5. Management and Control: Board composition, voting rights, and decision-making processes
6. Family Council: Structure and role of the family council in business governance
7. Transfer Restrictions: Limitations on share transfers, including right of first refusal and tag-along rights
8. Family Member Employment: Terms and conditions for family members working in the business
9. Dividend Policy: Framework for dividend distributions and reinvestment
10. Dispute Resolution: Procedures for resolving family and business conflicts
11. Succession Planning: Framework for leadership transition and next-generation involvement
12. Exit Mechanisms: Procedures for shareholder exit, including valuation methods
13. Confidentiality: Protection of family and business confidential information
14. Term and Termination: Duration of agreement and circumstances for termination
1. Family Values and Mission: Include when the family wants to formally document their business philosophy and values
2. Non-Family Shareholders: Required when there are or may be non-family shareholders
3. International Operations: Include for businesses with overseas operations or expansion plans
4. Family Office: Add when the family business includes or plans to establish a family office
5. Corporate Social Responsibility: Include when the family business has significant community involvement
6. Intellectual Property Rights: Required when the business has significant IP assets
7. Family Member Benefits: Include when specific benefits or perks are provided to family members
8. Emergency Succession Plan: Add for businesses wanting specific provisions for unexpected leadership changes
1. Schedule 1 - Current Shareholding Structure: Detailed breakdown of share ownership and share classes
2. Schedule 2 - Family Member Details: List of family members, their roles, and shareholdings
3. Schedule 3 - Reserved Matters: Decisions requiring special majority or unanimous approval
4. Schedule 4 - Share Valuation Methods: Detailed methodology for valuing shares in transfer situations
5. Schedule 5 - Family Employment Policy: Detailed criteria and terms for family member employment
6. Schedule 6 - Family Council Charter: Detailed rules and procedures for the family council
7. Schedule 7 - Dividend Policy Guidelines: Specific formulas and criteria for dividend calculations
8. Schedule 8 - Deed of Adherence: Template for new shareholders joining the agreement
Authors
Retail
Manufacturing
Real Estate
Hospitality
Agriculture
Trading
Food and Beverage
Textiles
Construction
Professional Services
Technology
Healthcare
Education
Automotive
Logistics
Legal
Corporate Governance
Board of Directors
Family Council
Executive Management
Company Secretarial
Human Resources
Family Office
Succession Planning
Corporate Affairs
CEO
Managing Director
Family Council Chairman
Board Chairman
Family Office Manager
Chief Financial Officer
Company Secretary
Legal Counsel
Human Resources Director
Succession Planning Manager
Corporate Governance Officer
Business Development Director
Family Member Director
Independent Director
Chief Operating Officer
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