Legal Documents

What is a Deed of Adherence ?

A Deed of Adherence is a document by which a person/entity becomes a party to an existing Shareholders’ Agreement.

A Deed of Adherence is used when a person/entity becomes a shareholder of a company (by subscribing new shares or by acquiring existing shares) where a Shareholders’ Agreement is already in place.

By executing a Deed of Adherence, the new shareholder becomes a party to the existing Shareholders’ Agreement, and is bound by all the terms of that agreement.

Key points included

  • Identity (name and address) of the subject company, the shares of which are being subscribed/acquired;
  • Details (parties and date) of the existing Shareholders’ Agreement; and
  • Details (number, class, and purchase price) of the shares being subscribed/acquired.

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