I hope that the above discussions will give you a better understanding of the purpose and nature of shareholder agreements and the issues that arise most often in relation to shareholder agreements. It goes without saying that there would be specific considerations regarding certain types of shareholder agreements, such as a joint venture or venture capital investment, which are outside the scope of this document. I would also like to say that I think it is wise to enter into a shareholders` pact which also envisages the inclusion of appropriate service agreements with important members of the management team as long as they are not yet in place. This article focuses on shareholder agreements, as they apply to start-up companies, particularly private companies, which are limited by shares that are by far the most common type of company in Ireland. While a director is entitled to all information relating to the company`s activities because of his duties as a director, he will subordinate this information to his fiduciary obligations, which involve the obligation not to use this information to the detriment of the company. In addition, under the law, a non-director shareholder has very limited rights to obtain information that, to simplify, do not receive much more than a right to Dener, which must be submitted to the general meeting for approval. It is therefore important, especially for minority shareholders, to open up a right to information about commercial activity. This can be formulated either as a right to receive specific information (for example. B monthly/quarterly administrative accounts, cash flow forecasts, annual budgets, etc.), or as a broader right to receive information about the behaviour of companies that such a shareholder can reasonably demand.
In some cases, particularly where the minority shareholder is an investor, when a shareholder is not informed, he may have the right to enter the company`s commercial premises, obtain and copy records, interview employees and appoint consultants on his behalf to investigate and report on the company`s conduct.