Repudiatory Breach Shareholders Agreement

The case law is that this is a substantial offence as a substantial offence. First, the terms of the contract may explicitly state that a violation of a particular type is questionable and that it confers on the other party the right, but not the obligation to terminate the contract. Clients who come to us in violation of contractual rights are often surprised that: when negotiating a termination clause, the parties should ensure that the clause provides a reasonable opportunity to correct the infringement or challenge an infringement. The treaty should make that clear and provide for a resolution of disputes. The context of the infringement and the seasoned analysis of the contract are essential, as there are no very clear termination rights. You can count on our experience, so please get in touch. Our lawyers deal with treaty violations on a daily basis. Given the very significant potential consequences of terminating a contract and the potential for legal or strategic error, we are happy to talk to you and help you protect your interests. Please contact us.

It is useful to look for case law to obtain guidelines, but this is not final and an offence will always be tried by the court in all relevant circumstances. A breach of the shareholders` agreement may occur due to a number of circumstances, but it actually occurs when action contrary to the terms of the agreement is taken. This could be the case when a shareholder decides to sell some of the most important assets of a company without proper authorization or if shares are transferred in a manner contrary to the rules established in the shareholders` pact. An infringement may also occur if the entity makes a decision without the required majority of shareholders. Other areas that often lead to an infringement are the company`s dividend policy or the breach of confidentiality obligations contained in the agreement. A party facing a violation of the other party`s refusal should check whether the circumstances mean that the commercial objective of the contract is thwarted. If this is the case, the contract automatically expires and it loses the ability to continue it after a recent end of the contract.

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