Transfer Of Shares Agreement Malaysia

Paid-up capital is the amount of funds or capital that shareholders have injected into the company for shares allocated to shareholders and issued to shareholders. PandaTip: You can start the pages of this agreement to make sure the calendar can`t be changed later. Most Malaysian-based companies have shareholder agreements. Shareholder agreements define the main details of how the company`s shareholders are related to the management and operation of the company; So they are really of the utmost importance. Rights of the first refusal – a requirement for a shareholder to offer the other shareholders of the company the right (but no obligation) to acquire the shares before the sale or sale of shares to a third party. This share transfer agreement (the “agreement”) defines the conditions under which [TRANSFEROR NAME] (the “Transferor”), a company, which is duly registered in accordance with [STATE` law] with the registered number [REGISTERED NUMBER] and which has its address registered under [REGISTERED ADDRESS], that it transfers certain shares held by it to [TRANSFEREE NAME] (the “Transferee”), a company duly registered in accordance with the law of [STATE] with the registered number [REGISTERED NUMBER] and which has its address registered with [REGISTERED NUMBER] ADDRESS] (together), the “parties”). THE CÉDANT wishes to transfer the shares to the purchaser on the terms set out in this share transfer agreement. These restrictions generally apply in the form of a right of first refusal in favour of other existing shareholders or in the form of board powers to refuse registration of the share transfer. Many shareholder agreements in Malaysia are established with provisions that protect the company`s minority shareholders or those with equal interests. Minority shareholders are those who collectively hold less than half of the value of the company`s shares, while equal-share shareholders are those who collectively hold exactly half of the value of the company`s shares. A shareholders` pact is a document prepared for the benefit of a company`s shareholders. So there is no reason for companies that do not need a shareholder. These companies include individual companies and partnerships.

This is why individual companies and partnerships in Malaysia do not require shareholder agreements, as these agreements would be invalidated because of the respective nature of individual companies and partnerships. 5.13 In the event that a clause (or part of a clause) is found to be unlawful or invalidated by a competent court or other legal authority, this has only the effect of nullity and absence of that clause (or part of a clause) and will not invalidate that share transfer contract entirely. Notwithstanding the above, the board`s agreement is necessary for the transfer of shares. The valuation of the shares is generally calculated on the basis of the following points: 5.15 This share transfer agreement binds the two parties because of the conduct of both parties and despite a defect or error in the formality of their execution for both parties. The names of former shareholders will continue to appear in the MSM system, although the share transfer was carried out in full by the directors or the company secretary. The assignor is the registered holder of these shares or shares pursuant to Schedule A (the “shares”).