Document background
The Shareholder Management Agreement is a fundamental document used when establishing or updating the governance framework of a company in Malaysia. It becomes particularly relevant when multiple shareholders are involved, or when specific rights and obligations need to be clearly defined between different classes of shareholders. The agreement, governed by Malaysian law including the Companies Act 2016 and related regulations, typically includes provisions for share transfers, voting rights, board representation, reserved matters, dividend policies, and dispute resolution mechanisms. It's especially crucial for companies with diverse ownership structures, joint ventures, or those planning for future investment or expansion. The document serves as a cornerstone for corporate governance, helping prevent potential conflicts while providing clear procedures for company management and shareholder relations.
