Often when the personal circumstances of the owners or shareholders of a company change drastically, the arrangement(s) in relation to the ownership running of the business/company need to change as well. This in the best interests of the company’s continuity.
In the case of shareholders, these changes are regulated by the shareholders agreement (generally speaking) by way of the exit or buy out provisions (therein contained). In the case of directors, regulation is based on the MOI (memorandum of incorporation) and Companies Act and generally involve considerations for managerial succession.
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