In other words, if a new entity or individual becomes a shareholder by purchasing shares in the company, the existing shareholders can terminate the shareholders` agreement by mutual agreement and replace it with a new one. Before the entry into force of the new shareholder agreement, shareholders terminate the existing shareholder contract by deed of termination. The act of termination of the partner`s contract terminates the contract with the agreement of the parties. In the United States, the act of termination of a shareholder agreement is used if the parties to a shareholder agreement wish to terminate their agreement. There are many reasons why the parties wish to terminate their shareholders` agreement, but most of the time, the parties will terminate it when a new investment is made in the company and it is therefore necessary to create a new shareholders` agreement. In addition, a restriction clause may be included in an act of termination of a shareholder contract, in order to protect the goodwill of the company and to prevent a shareholder who leaves the company from competing with the company, taking customers and benefiting from the company`s knowledge and experience. As a general rule, a restriction clause in an act of termination of the shareholder agreement prevents a shareholder during the term of the contract and for a specified period after the termination of: it requires that all parties to the shareholders` agreement that is terminated be parties to the act of termination. Simply put, the same parties who sign the shareholder agreement must sign the deed of termination. But the most important thing is that the act must contain a waiver and declassification clause.
The clause should stipulate that shareholders waive each other`s all past, present and future debts and claims, and release them.