The valuation of stocks is always subjective. Valuation methods can be formulated in a shareholder pact, but valuations themselves are less likely. If that is the case, it is a trade issue that needs to be agreed upon. The question for the remaining shareholders is why would those who left the company benefit from future growth that they could not have created a hand at? And more importantly, would you really want someone to keep their shareholding and the dividends and voting rights that go with it, if you had reasons to remove them from their posts because of poor performance or bad conduct? The importance of mutual exclusivity has been demonstrated in Moxon/Litchfield, among others  All ERs (D) 133 (Dec) that have taken into account the provisions of a company`s shareholders` pact, the initial and revised statutes and various service agreements between the company and other parties. The Court found that these documents were well drafted and that Mr. Moxon had rightly been characterized as a bad descendant. Accordingly, the Court had no basis for intervening as a intervener and for amending the contractual agreement between the parties. The company may also adopt a more flexible discretionary welfare regime that allows the company`s board of directors/committee to decide, on a case-by-case basis, whether or not a shareholder is considered a good or bad start. Clear provisions in shareholder contracts are essential – in the absence of such provisions, a person, including a person who acts selfishly or ruthlessly vis-à-vis his co-shareholders or as a worker, may attempt to argue that just principles should protect him. Although not based on complaints and evidence, the likeies of litigation are minimized, with considerable costs and burdens when the documents are clear. It is therefore essential to take into account good and bad outgoing issues in shareholder agreements and other documents. The definition of a bad start could result in an administrative burden for reasons such as: shareholders who are separated from the day-to-day work of a company.
These shareholders must be associated with each shareholder meeting. Depending on the percentage of shares held, these shareholders could perhaps block any vote requiring a 75% agreement, i.e. a special resolution. Ex-employees can cripple the company`s decision-making process. They could even block a business sale. A good graduate is generally defined as an employee and a shareholder of a company that dies, is unable to act due to physical or mental illness, is wrongly dismissed or dismissed.