The reason for the will of a shareholders` pact will generally be to assert veto rights: thus, contrary to the common law, the powers of the board of directors (or shareholders to exercise their own power – see below) are reduced. The articles are a contract between the shareholders. It can be amended with 75% of the votes of these shareholders, but it is subject to established rights to protect the minority from unjustifiable treatment. The bill also complements the Civil Code of Ukraine with provisions governing the use of trust accounts that will be mandatory under the squeeze-out. The bidder who wishes to exercise the right to squeeze-out pays the share price on an open trust account for the benefit of minority shareholders. All shareholders have rights to the financial and management reports of companies, which are usually presented annually. Large shareholders may be entitled to monthly or quarterly reports. Larger shareholders can also negotiate the right to access company documents, which can include company visits, interviews with company officials and the ability to copy records. Some of the most important points (i.e. a checklist) to include in a shareholder pact are: external financing and the terms and conditions are generally defined by a company`s board of directors and must be associated with all guarantees in a SHA. In this case, the SHA may stipulate that such external financing must be obtained without guarantee or support from shareholders (unless everyone gives their prior consent). A SHA will generally indicate the number of original board members (and often their names and other details) and sometimes the rights of some shareholders to appoint a certain number of board members.
Other shareholders, without the right to appoint directors, must vote in accordance with the company`s by-law. This section should also indicate that shareholders ensure that a business plan (i.e. budget) is established and updated, approved and in effect at any time. In this SHA clause, the provisions often exceed protection in the legal or standard statutes and provide for provisions of the majority for the approval of certain acts.