Who can use a Deed of Adherence?
Anyone becoming a party to a shareholders’ agreement should use a deed of adherence.
What is a Deed of Adherence for?
If your company already has a shareholders’ agreement and you want a new shareholder to sign up to that agreement, you need this document. You can use it whether the new shareholder subscribes for new shares or buys shares from another shareholder.
What are the main issues for a company requiring a deed of adherence?
Every shareholders’ agreement will have terms that regulate the rights and obligations of the shareholders. When a new shareholder is introduced, the existing shareholders will want that individual (or company) to be subject to the same rules. So, signing the deed of adherence should be a condition of becoming a shareholder.
What does the deed of adherence contain?
Three paragraphs, the main purpose of which is to have the new shareholder undertake to be bound by the terms of the existing shareholders’ agreement.
While very short, the document is an important one: without this formality, a new shareholder would not necessarily be committed to the same obligations as the rest.
For more information, see our Explanatory Notes , which you will receive when you download the document from our website.
For information on signing documents and deeds, see our contract signing page.
When I download the document, can I change it and/or use it more than once?
Yes, you can. ContractStore’s templates are prepared in MS Word and are easy to edit. You can fill in the details and alter the terms as appropriate.
ContractStore is a publisher of legal templates, not a law firm. But we have well-qualified lawyers who prepare all our documents. So, we can arrange legal support if required. For more information see our Legal Services page.
If you want to contact us, see our Contact page
If you have any questions about a contract and/or want to see the Explanatory Notes before you buy, please let us know by using our contact form
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