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Reproduced by Cabinet Online in terms of Government Printers Copyright Authority No. 10505 dated 02 February 1998 188 GOVERNMENT Gazettes, 22 DECEMBER 2009 No. 32832 COMPANIES REGULATIONS Draft FOR

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How to fill out article 3 - shareholders

How to fill out article 3 - shareholders:

01

Identify the purpose of article 3: The article on shareholders typically outlines the rights, responsibilities, and voting power of the shareholders in a company. Begin by understanding the purpose of this article and what it should cover.

02

Define the shareholders: Clearly state who the shareholders are in your company. Provide their names, contact information, and any other relevant details. Specify whether they are individuals or entities.

03

Detail the share classes: If your company has different classes of shares, describe their characteristics in this section. Include details on the voting rights, dividend entitlements, and any other attributes unique to each class.

04

Explain shareholder rights: Enumerate the various rights that shareholders possess, such as the right to attend and vote at general meetings, the right to receive financial reports, the right to dividends, etc. Clearly stipulate any limitations or conditions that may apply.

05

Outline shareholder responsibilities: Outline the obligations and responsibilities that shareholders are expected to fulfill, such as paying for their shares, complying with the company's bylaws, etc.

06

Specify share transfer and transmission: If there are any restrictions on transferring shares, describe them in this section. Also, clarify the procedures for the transmission of shares in the event of a shareholder's death or insolvency.

Who needs article 3 - shareholders:

01

Startups: For startup companies that have just been incorporated, it is crucial to establish clear guidelines regarding the rights and responsibilities of shareholders. Article 3 provides a framework for future decision-making and can help avoid conflicts.

02

Existing companies: Established companies may need to review and amend their articles of incorporation periodically. Article 3 ensures that the rights and obligations of shareholders are up to date and aligned with the company's current position.

03

Investors and potential stakeholders: Shareholders play a significant role in influencing the direction and success of a company. Investors and potential stakeholders who are considering joining the company would need to understand the details of article 3 to assess their potential involvement.

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