Document background
The Stakeholders Agreement is a crucial document used in Philippine corporate governance when multiple parties hold ownership interests in a corporation. It becomes particularly relevant during company formation, new investor entry, or corporate restructuring. The agreement must comply with the Revised Corporation Code of the Philippines and related regulations, including foreign ownership restrictions where applicable. It typically includes detailed provisions on share transfers, voting mechanisms, board representation, minority protection rights, and exit strategies. The document serves as a fundamental contract that prevents potential disputes by clearly defining stakeholder rights and responsibilities, management structure, and decision-making processes. It's especially important in private companies where shares are not publicly traded and in family-owned businesses seeking to professionalize their operations.
