Company Ownership Agreement Template for Philippines

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Key Requirements PROMPT example:

Company Ownership Agreement

"I need a Company Ownership Agreement for a Philippine tech startup with three equal shareholders (all Filipino citizens), including specific provisions for future funding rounds and anti-dilution protection, to be implemented by March 2025."

Document background
The Company Ownership Agreement is essential for businesses operating in the Philippines that need to formalize their ownership structure and shareholder relationships. This document becomes particularly crucial during company formation, when new shareholders join, or when existing ownership structures need reorganization. It must comply with the Revised Corporation Code of the Philippines and related regulations, including foreign ownership restrictions where applicable. The agreement typically covers share capital distribution, voting rights, transfer restrictions, management rights, dividend policies, and dispute resolution mechanisms. It's particularly important for companies with multiple shareholders, foreign investors, or complex ownership structures, serving as the primary reference point for ownership-related matters and corporate governance.
Suggested Sections

1. Parties: Identifies all shareholders and the company, including their complete legal names and addresses

2. Background: Explains the context of the agreement, company formation details, and purpose of the arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Share Capital and Ownership Structure: Details the company's authorized capital, issued shares, and ownership distribution

5. Rights and Obligations of Shareholders: Outlines shareholders' voting rights, dividend rights, and general obligations

6. Share Transfer Restrictions: Specifies conditions and procedures for transferring shares, including right of first refusal

7. Management and Control: Details governance structure, board composition, and decision-making processes

8. Meetings and Resolutions: Procedures for shareholder meetings, voting requirements, and resolution passing

9. Dividend Policy: Sets out the approach to declaring and distributing dividends

10. Dispute Resolution: Procedures for handling disagreements between shareholders

11. Confidentiality: Obligations regarding company and shareholder information confidentiality

12. Term and Termination: Duration of the agreement and circumstances for termination

13. Governing Law: Confirms Philippine law as governing law and relevant jurisdiction

14. Execution: Formal signing section with witness requirements

Optional Sections

1. Tag-Along Rights: Used when minority shareholders need protection to join in sale of shares by majority shareholders

2. Drag-Along Rights: Included when majority shareholders may need to force minorities to join in a company sale

3. Anti-Dilution Provisions: Added when protecting certain shareholders from equity dilution is necessary

4. Special Rights for Specific Share Classes: Required when the company has multiple share classes with different rights

5. Foreign Ownership Compliance: Needed when foreign shareholders are involved, ensuring compliance with Philippine foreign ownership restrictions

6. Deadlock Resolution: Important for companies with 50-50 ownership splits

7. Pre-emptive Rights: Optional section for giving existing shareholders priority in new share issuances

8. Put and Call Options: Include when shareholders want specific share purchase or sale rights

Suggested Schedules

1. Schedule A - Share Capital and Shareholding Structure: Detailed breakdown of share classes, numbers, and ownership percentages

2. Schedule B - Initial Officers and Directors: List of initial board members and corporate officers with their positions

3. Schedule C - Reserved Matters: List of decisions requiring special majority or unanimous approval

4. Schedule D - Company Information: Detailed company information including registration numbers, registered address, and other corporate details

5. Schedule E - Deed of Adherence: Template for new shareholders to join the agreement

6. Schedule F - Valuation Methodology: Agreed methods for share valuation in various scenarios

7. Schedule G - Transfer Procedures: Detailed procedures and forms for share transfers

8. Schedule H - Competing Business Restrictions: Details of any non-compete obligations and restricted activities

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 | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Technology

Manufacturing

Retail

Financial Services

Real Estate

Professional Services

Healthcare

Education

Hospitality

Construction

Energy

Agriculture

Transportation

Media and Entertainment

Relevant Teams

Legal

Corporate Secretariat

Compliance

Finance

Corporate Governance

Board Secretariat

Risk Management

Investor Relations

Corporate Affairs

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Company Secretary

Corporate Lawyer

Legal Counsel

Compliance Officer

Board Director

Managing Director

Corporate Governance Officer

Investment Manager

Shareholder Relations Manager

Business Development Director

Corporate Finance Manager

Risk Management Officer

Company Registrar

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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