Corporation Ownership Agreement Template for Philippines

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Key Requirements PROMPT example:

Corporation Ownership Agreement

"I need a Corporation Ownership Agreement for a family-owned manufacturing business in Manila being restructured in January 2025, with provisions for transitioning from sole proprietorship to corporation structure and protecting minority shareholders' rights among family members."

Document background
The Corporation Ownership Agreement serves as the foundational document governing the relationship between shareholders and establishing the framework for corporate ownership in Philippine corporations. This document becomes essential when establishing new corporations, restructuring existing ones, or when multiple shareholders need to formalize their rights and obligations. It must comply with the Revised Corporation Code of the Philippines, Securities Regulation Code, and other relevant Philippine legislation. The agreement typically addresses crucial aspects such as share transfer restrictions, voting rights, management participation, dividend policies, and exit mechanisms, while ensuring compliance with Philippine foreign ownership restrictions if applicable. It's particularly important for companies with multiple shareholders, family-owned businesses transitioning to formal corporate structures, or when bringing in new investors.
Suggested Sections

1. Parties: Identification of all shareholders and the corporation, including their complete legal names and addresses

2. Background: Context of the agreement, including company formation details and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules used throughout the agreement

4. Share Capital and Ownership Structure: Details of authorized capital, issued shares, and ownership percentages

5. Rights and Obligations of Shareholders: Core shareholder rights, voting rights, dividend rights, and fundamental obligations

6. Transfer Restrictions: Limitations on share transfers, right of first refusal, tag-along and drag-along rights

7. Corporate Governance: Board composition, appointment rights, meeting procedures, and decision-making processes

8. Reserved Matters: Actions requiring special shareholder approval or unanimous consent

9. Dividend Policy: Rules and procedures for declaring and distributing dividends

10. Information Rights: Shareholders' rights to company information and financial statements

11. Confidentiality: Obligations regarding confidential information and trade secrets

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

13. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions

14. General Provisions: Standard clauses including notices, amendments, governing law, and severability

Optional Sections

1. Pre-emptive Rights: Rights of existing shareholders to maintain their percentage ownership in new share issuances

2. Tag-Along and Drag-Along Rights: Include when shareholders want specific exit rights or forced sale provisions

3. Anti-dilution Protection: Protection mechanisms for maintaining ownership percentage in case of share issuance

4. Foreign Ownership Compliance: Required when foreign shareholders are involved, detailing compliance with Philippine foreign ownership restrictions

5. Share Classes and Rights: Needed when multiple share classes with different rights exist

6. Management Provisions: Detailed management structure and responsibilities when shareholders are involved in day-to-day operations

7. Deadlock Resolution: Special provisions for resolving deadlock situations in 50-50 ownership structures

8. Non-Compete and Non-Solicitation: Restrictions on competitive activities and employee solicitation

9. Put and Call Options: Special share purchase rights in specific circumstances

Suggested Schedules

1. Schedule 1 - Share Capital and Shareholding Structure: Detailed breakdown of share capital, share classes, and current shareholding

2. Schedule 2 - Reserved Matters: Comprehensive list of matters requiring special or unanimous approval

3. Schedule 3 - Initial Officers and Directors: List of initial board members and corporate officers

4. Schedule 4 - Share Valuation Methodology: Agreed methods for valuing shares for transfer purposes

5. Schedule 5 - Corporate Governance Procedures: Detailed procedures for board and shareholder meetings

6. Appendix A - Form of Deed of Adherence: Template for new shareholders joining the agreement

7. Appendix B - Articles of Incorporation: Copy of the company's Articles of Incorporation

8. Appendix C - By-laws: Copy of the company's By-laws

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

Manufacturing

Technology

Real Estate

Retail

Professional Services

Financial Services

Healthcare

Energy

Agriculture

Transportation and Logistics

Construction

Hospitality

Mining

Education

Media and Entertainment

Relevant Teams

Legal

Corporate Secretariat

Compliance

Finance

Executive Leadership

Board of Directors

Corporate Governance

Risk Management

Shareholder Relations

Investment

Relevant Roles

Chief Executive Officer

Corporate Secretary

Legal Counsel

Chief Legal Officer

Corporate Lawyer

Business Development Director

Chief Financial Officer

Investment Manager

Compliance Officer

Company Director

Board Member

Managing Director

Corporate Governance Officer

Shareholder Relations Manager

Risk Management Officer

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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