Document background
The Shareholder Representative Agreement is a crucial document in South African corporate governance, typically used when shareholders require professional representation in company matters. This arrangement is common in situations involving multiple shareholders, foreign investors, or complex corporate structures where direct shareholder participation may be impractical or inefficient. The agreement must comply with the Companies Act 71 of 2008 and consider the King IV Report guidelines, making it particularly relevant for both private and public companies in South Africa. It details the representative's authority to act on shareholders' behalf in matters such as voting at general meetings, engaging with management, and protecting shareholder interests. The document becomes especially important in scenarios involving minority shareholder protection, corporate restructuring, or when shareholders require specialized expertise in corporate governance matters.
