Deed of Adherence: Shareholders' agreement between several shareholders

by Practical Law Corporate

A deed of adherence for a new shareholder to become a party to, and be bound by, an existing shareholders' agreement. This standard document is intended for use in England and Wales when a new party is acquiring shares in a private company limited by shares, either through a transfer of shares from an existing shareholder or by a new subscription for shares. By executing this deed, the new shareholder confirms they have received a copy of the shareholders' agreement and undertakes to observe, perform, and be bound by its provisions as if they were an original party. This deed is drafted to be executed by the new shareholder, the continuing shareholders, and the company, which ensures that the undertakings and obligations within the shareholders' agreement become mutually enforceable. It also addresses the potential ongoing liabilities of any outgoing shareholder, provides options for both individual and corporate shareholders, and includes standard governing law and jurisdiction clauses for England and Wales. This standard document may be used in connection with Standard document, Shareholders' agreement between several shareholders.