Memorandum Of Understanding Shareholders Agreement Template for Belgium

A Memorandum of Understanding Shareholders Agreement under Belgian law serves as a preliminary framework document outlining the key terms and principles agreed upon between shareholders of a company. This document, governed by Belgian corporate law and the Belgian Code of Companies and Associations (BCCA), establishes the fundamental understanding between parties regarding share ownership, management rights, transfer restrictions, and governance structures. While not as detailed as a full shareholders agreement, it creates a foundation for future detailed negotiations while providing clear direction on shareholders' intentions and basic obligations.

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What is a Memorandum Of Understanding Shareholders Agreement?

The Memorandum of Understanding Shareholders Agreement is typically used in Belgian corporate environments when shareholders need to establish initial understanding before committing to a comprehensive shareholders agreement. This document is particularly valuable during company formations, restructuring phases, or when bringing in new investors, as it allows parties to document their preliminary agreements while maintaining flexibility for future detailed negotiations. Under Belgian law, while primarily serving as a framework document, certain provisions can be made binding, offering a balance between commitment and flexibility. The document typically includes essential elements such as share transfer principles, management structures, and basic shareholder rights, while adhering to the requirements of the Belgian Code of Companies and Associations.

What sections should be included in a Memorandum Of Understanding Shareholders Agreement?

1. Parties: Identification of all shareholders and the company, including registration details and addresses

2. Background: Context of the MOU, including company history, current situation, and purpose of the understanding

3. Definitions: Key terms used throughout the document

4. Purpose and Scope: Clear statement of the MOU's objectives and extent of the understanding

5. Share Capital Structure: Current and proposed shareholding structure, classes of shares

6. Management and Control: Basic principles of company management and decision-making processes

7. Transfer of Shares: General principles regarding share transfers, pre-emption rights, and restrictions

8. Shareholder Rights and Obligations: Basic understanding of shareholders' rights, voting arrangements, and obligations

9. Confidentiality: Agreement on handling confidential information

10. Duration and Termination: Term of the MOU and circumstances for termination

11. Nature of Understanding: Clear statement on which provisions are binding and non-binding

12. Governing Law: Specification of Belgian law as governing law and jurisdiction

What sections are optional to include in a Memorandum Of Understanding Shareholders Agreement?

1. Dividend Policy: Include when shareholders want to establish preliminary understanding on profit distribution

2. Anti-dilution Protection: Include when there are plans for future capital raises

3. Tag-Along and Drag-Along Rights: Include when considering future exit possibilities

4. Dispute Resolution: Include when parties want to specify mediation or arbitration processes

5. Non-Compete and Non-Solicitation: Include when shareholders are active in similar businesses

6. Future Financing: Include when additional capital requirements are anticipated

7. Intellectual Property Rights: Include when IP is a significant aspect of the business

8. Related Party Transactions: Include when shareholders have business relationships with the company

What schedules should be included in a Memorandum Of Understanding Shareholders Agreement?

1. Current Shareholding Structure: Detailed breakdown of current share ownership and share classes

2. List of Reserved Matters: Matters requiring special majority or unanimous shareholder approval

3. Company Information: Key company details, registration numbers, and corporate structure

4. Proposed Board Structure: Overview of proposed board composition and governance structure

5. Key Business Terms: Summary of main commercial terms agreed between shareholders

6. Timeline: Proposed timeline for converting the MOU into a full Shareholders' Agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Belgium

Publisher

Genie AI

Cost

Free to use

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