The exact form of the document depends on the structure of your existing shareholders` agreement. Sometimes the shareholders` agreement contains an instrument of accession in an annex. Sometimes they are written as a document survey, so the only person who signs them is the new shareholder. In other cases, they may require other shareholders to sign or require the company to sign on their behalf. The instrument of accession should be a fairly simple document. It should address the above-mentioned basic points. However, you will probably focus on the shareholders` agreement itself, as that is where your material rights and obligations lie. If you are an investor, there are a number of things you should consider before making your investment, as we explain here. Depending on the size and circumstances of your investment, it may be appropriate to amend the shareholders` agreement before signing it. Lawyers prepare instruments of accession as an “instrument”, unlike “agreements”, to ensure that they are enforceable. Essentially, the document has a certain form and must be signed in a certain way. Sometimes referred to as an “instrument of accession”, an instrument of accession is an instrument that binds a person to an existing shareholders` agreement. A shareholders` agreement only binds the persons who sign it or agree to be bound to it.
This is different from the company`s articles of association, which, under the Stock Act, are automatically binding on all shareholders (new and existing). This is due to the fact that the obligations arising from an “agreement” are not applicable, unless the person related to it has taken into account the other parties. The consideration requirement does not apply to the act. The signing of an instrument of accession binds the new shareholder to the same rules as the existing rules. It also ensures that the new shareholder benefits from the rights granted to the other shareholders under the shareholders` agreement. To learn more about shareholder agreements, click here or access our full guide via the link below. Where there is a shareholders` agreement, new shareholders must normally sign an instrument of membership before they can be registered as shareholders. Each Party shall appoint the security trustee who, on its behalf, shall accept and accept any instrument of accession and instrument of accession to the intercreditor given to the security trustee, if it is, in the opinion of the security trustee, complete and appears on its face to be genuine and properly executed and is not effective until such time as the security trustee accepts and signature such document. The Facility Agent shall promptly inform the other parties to this Agreement of the receipt and execution of an instrument of accession from the Lender on their behalf. A senior Lender may assign its rights and benefits or transfer its rights, benefits and obligations with respect to senior financing documents or its commitments, if such assignment or transfer is made in accordance with the terms of the senior insurance agreement and an assignee or assignee has executed an instrument of membership in the intercreditor and handed it over to the security trustee.
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