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Company Ownership Agreement Template for Nigeria

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Key Requirements PROMPT example:

Company Ownership Agreement

"I need a Company Ownership Agreement for a Nigerian tech startup with three founding shareholders (two local and one foreign investor), including specific provisions for future funding rounds and share dilution protection, to be effective from March 2025."

Document background
The Company Ownership Agreement is a fundamental document used when establishing or restructuring company ownership in Nigeria. It is essential for both new company formations and existing companies undergoing ownership changes, operating under the Companies and Allied Matters Act (CAMA) 2020 and related Nigerian legislation. This agreement is particularly crucial for companies with multiple shareholders, foreign investment, or complex ownership structures. It details critical aspects such as shareholding percentages, voting rights, share transfer mechanisms, management control, and shareholder protection provisions. The document serves as a binding contract that prevents future disputes by clearly defining ownership rights and responsibilities, governance structures, and operational procedures, while ensuring compliance with Nigerian corporate law requirements and regulatory standards.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details for corporate entities

2. Background: Context of the agreement, including company information and purpose of the ownership arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Share Capital and Ownership Structure: Details of the company's share capital, classes of shares, and ownership percentages

5. Rights and Obligations of Shareholders: Comprehensive outline of shareholders' rights, including voting rights, dividend rights, and information rights

6. Share Transfer Restrictions: Conditions and procedures for transferring shares, including right of first refusal and tag-along/drag-along rights

7. Management and Control: Governance structure, board composition, and decision-making processes

8. General Meetings: Procedures for conducting shareholder meetings, voting mechanisms, and quorum requirements

9. Dividend Policy: Framework for dividend declarations and distributions

10. Confidentiality: Provisions protecting company and shareholder confidential information

11. Dispute Resolution: Procedures for resolving disputes between shareholders

12. Termination: Circumstances and procedures for terminating the agreement

13. Governing Law: Specification of Nigerian law as governing law and jurisdiction

Optional Sections

1. Pre-emptive Rights: Rights of existing shareholders to maintain their ownership percentage in new share issuances

2. Tag-Along and Drag-Along Rights: Specific provisions for minority shareholder protection and majority shareholder exit rights

3. Non-Competition and Non-Solicitation: Restrictions on shareholders competing with the company or soliciting employees/customers

4. Death and Incapacity Provisions: Procedures for handling ownership in case of death or incapacity of individual shareholders

5. Foreign Ownership Provisions: Special provisions required when foreign shareholders are involved

6. Intellectual Property Rights: Provisions regarding ownership and use of company intellectual property

7. Put and Call Options: Rights to force purchase or sale of shares under specific circumstances

8. Corporate Social Responsibility: Commitments to environmental, social, and governance standards

Suggested Schedules

1. Schedule 1: Share Capital and Shareholding Structure: Detailed breakdown of share classes, numbers, and ownership percentages

2. Schedule 2: Initial Shareholders and Share Allocations: List of all shareholders with their initial share allocations and contact details

3. Schedule 3: Reserved Matters: List of decisions requiring special majority or unanimous shareholder approval

4. Schedule 4: Share Valuation Methodology: Agreed methods for valuing shares in various transfer scenarios

5. Schedule 5: Company's Business Plan: Initial business plan and strategic objectives

6. Appendix A: Share Certificate Template: Template for share certificates complying with CAMA requirements

7. Appendix B: Board Resolution Templates: Standard templates for common board resolutions

8. Appendix C: Transfer Notice Forms: Standard forms for initiating and processing share transfers

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions














































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Relevant Industries

Technology

Manufacturing

Financial Services

Real Estate

Agriculture

Oil and Gas

Telecommunications

Healthcare

Retail

Construction

Professional Services

Education

Mining

Transportation and Logistics

Entertainment and Media

Renewable Energy

Relevant Teams

Legal

Corporate Secretariat

Board of Directors

Executive Management

Finance

Compliance

Corporate Affairs

Risk Management

Investment Relations

Corporate Development

Relevant Roles

Chief Executive Officer

Managing Director

Company Secretary

Legal Counsel

Corporate Lawyer

Chief Financial Officer

Board Director

Compliance Officer

Investment Manager

Corporate Governance Officer

Shareholder Relations Manager

Business Development Director

Risk Manager

Corporate Affairs Director

General Counsel

Finance Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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