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Deed Of Termination Of Shareholders Agreement for Malaysia

Deed Of Termination Of Shareholders Agreement Template for Malaysia

A formal legal document governed by Malaysian law that effectively terminates an existing Shareholders Agreement between a company and its shareholders. This deed formally ends all rights, obligations, and relationships established under the original Shareholders Agreement, providing mutual releases and specifying any surviving obligations. It must comply with Malaysian deed execution requirements and typically requires stamping under the Stamp Act 1949. The document includes provisions for the handling of confidential information, settlement of outstanding matters, and confirmation that all parties agree to the termination.

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What is a Deed Of Termination Of Shareholders Agreement?

The Deed of Termination of Shareholders Agreement is a crucial document used when parties to an existing Shareholders Agreement mutually agree to terminate their arrangement. This document is particularly relevant in Malaysian corporate scenarios where shareholders wish to formally end their existing agreement, whether due to a company restructuring, share transfer, company sale, or other significant corporate changes. The deed must comply with Malaysian legal requirements, including proper execution as a deed and stamping under the Stamp Act 1949. It typically includes comprehensive provisions for mutual releases, handling of confidential information, and treatment of any surviving obligations. This document is essential for providing legal certainty and clear documentation of the termination of shareholders' relationships and obligations.

What sections should be included in a Deed Of Termination Of Shareholders Agreement?

1. Parties: Details of all shareholders and the company who are parties to the termination deed

2. Background: Recitals describing the original Shareholders Agreement, its date, and the parties' desire to terminate it

3. Definitions: Definitions of key terms used in the deed, including reference to the original agreement

4. Termination: Clear statement of termination of the Shareholders Agreement and its effective date

5. Release and Discharge: Mutual release of parties from obligations under the original agreement

6. Return of Documents: Provisions for return or destruction of confidential information

7. Representations and Warranties: Confirmation that parties have authority to enter into the termination deed

8. Further Assurance: Agreement to execute further documents if necessary to give effect to the termination

9. Governing Law: Specification of Malaysian law as governing law

10. Execution: Formal execution blocks meeting requirements for a Malaysian deed

What sections are optional to include in a Deed Of Termination Of Shareholders Agreement?

1. Surviving Provisions: Used when certain provisions of the original agreement need to survive termination (e.g., confidentiality obligations)

2. Settlement of Outstanding Matters: Include when there are outstanding obligations or payments to be addressed

3. Dispute Resolution: Include when specific dispute resolution mechanisms are needed for post-termination matters

4. Non-Compete and Non-Solicitation: Used when parties wish to maintain these restrictions post-termination

5. Tax Matters: Include when there are specific tax implications or obligations to be addressed

6. Costs: Include when parties need to specify how termination-related costs are to be allocated

What schedules should be included in a Deed Of Termination Of Shareholders Agreement?

1. Original Shareholders Agreement: Copy or details of the Shareholders Agreement being terminated

2. Related Agreements: List of any related agreements also being terminated

3. Outstanding Obligations: Schedule of any outstanding matters and their agreed resolution

4. Company Information: Current corporate information including shareholding structure

5. Board Resolutions: Copies of relevant board resolutions approving the termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Ƶ

Cost

Free to use

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