You have cleaned out the storeroom during lock down but have you looked at getting your company’s documents in order?
The financial and operational stress placed on many businesses as a result of the COVID-19 lockdown may inevitably result in restructure of ownership, whether voluntary or by agreement. If your business is a company or close corporation (also referred to as a "CC" of which there are still a number in existence, even though new CCs cannot be registered) you may be re-considering how your business needs to change in order to be sustainable in the future, or you may be looking at your business with renewed focus which may necessitate a change in ownership whether by the exit of shareholders (or members in the case of a CC) or the introduction of new ones.
Revisiting your shareholders’ agreement and memorandum of incorporation
When having your company’s memorandum of incorporation (MOI) and, if applicable a shareholders’ agreement, drawn up, there are often assumptions made at the time of drafting about how the future of your company will look. For example, how will you value it for key events (such as death of a shareholder or other forced sale?) more...