Replaceable rules are a basic framework for a company`s articles of association that you can adapt to the needs of your business. However, you can also choose to adopt the rules simply as the internal governance of your company. Despite the fact that these documents cover a similar territory, there are often a number of substantial differences between a company incorporation and a shareholders` agreement. The content of a shareholder agreement depends on the circumstances of a company. However, some standard clauses usually found in an agreement include that lawyers are often asked to design shareholder agreements, most often for small and family businesses.  These agreements operate in conjunction with the traditional incorporation of the company in order to regulate the relationship between the main parties interested in more specific rules, rights and obligations. When setting up a new entity, stakeholders should carefully consider whether a shareholders` agreement would help to better define their rights and obligations. An existing shareholder challenged the validity of the share issue and asserted that the directors were not entitled to issue the shares, given that the issue conditioned the rights of existing common shareholders and, therefore, the approval of 75% of ordinary shareholders was required by the Constitution. In September 2013, Cody Live Board Holdings Ltd wanted to raise a capital of approximately $1 million. To this end, the Board of Directors issued preferred shares to new shareholders to exchange funds and issued common shares to existing shareholders.
The purpose of the condition of approval of at least 75% of ordinary shareholders in the Constitution was to protect the interests of holders of existing shares. . . .