Document background
The Memorandum of Understanding Shareholders Agreement is commonly used in Singapore when parties wish to establish preliminary terms for their shareholder relationship before committing to a full shareholders agreement. This document is particularly useful during company formation, new investor negotiations, or corporate restructuring phases. It includes essential provisions regarding share ownership, management rights, and decision-making processes while maintaining flexibility for future modifications. Under Singapore law, while not as binding as a full shareholders agreement, it creates a framework for future cooperation and helps parties align their expectations and commitments.
