Deed of Termination of Shareholders’ Agreement

This Deed of Termination is intended for use when the parties to a shareholders’ agreement wish to terminate their shareholding arrangement.

This may be for a variety of reasons, but will often be because a new investment is being made into the company and it is therefore necessary that a new shareholders’ agreement be put in place.

Key points the deed is intended to cover

A deed of termination does not need to be a complicated agreement, but all parties to the shareholders’ agreement being terminated will need to be parties to this deed.

The deed should provide a waiver and release of each shareholder’s past, present and future liabilities from all claims against each other.

Why this template is drafted as a deed

This template has been drafted as a deed to overcome any potential problem of lack of consideration, as deeds are binding even without consideration.

Preserving selected provisions from the original agreement

As the effect of this agreement is to terminate the parties’ duties under the original shareholders’ agreement, it includes a clause dealing with provisions the parties may wish to preserve from the original shareholders’ agreement going forward.

Customers will need to consider which clauses they may wish to preserve. Clauses such as confidentiality are often included within this category.

What the deed covers

The deed includes provisions dealing with termination, waiver and release, further action, costs, the effect of termination, counterparts, and governing law and jurisdiction.

Deed of Termination of Shareholders’ Agreement is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.