Document background
The Memorandum Of Understanding Shareholders Agreement is a crucial document used when establishing or formalizing relationships between shareholders in a Philippine corporation. It becomes particularly relevant during company formation, when new investors join, or when existing shareholders wish to formalize their arrangements. The document must comply with Philippine corporate law, particularly the Revised Corporation Code and Securities Regulation Code, while addressing specific concerns such as foreign ownership restrictions in certain sectors. This agreement typically includes provisions for share transfers, voting rights, management participation, dividend policies, and dispute resolution mechanisms. It serves as a foundational document that helps prevent future conflicts by clearly defining shareholders' rights and obligations, making it essential for both startup ventures and established companies in the Philippines.
