Document background
The Memorandum of Understanding Shareholders Agreement is typically used in German corporate environments when parties need to establish preliminary understanding of shareholder relationships while maintaining flexibility for future negotiations. This document type is particularly valuable during corporate restructuring, new investor onboarding, or when establishing joint ventures under German law. It includes provisions for share ownership, voting rights, management structure, and key corporate governance elements, while adhering to German legal requirements. The document serves as a bridge between initial negotiations and a final shareholders' agreement, making it especially useful in complex transactions where parties need to document their intentions and basic agreements while working toward more detailed arrangements. It must comply with German corporate law principles, including the German Stock Corporation Act (Aktiengesetz) or Limited Liability Companies Act (GmbH-Gesetz), depending on the company form.
