Shareholder Support Agreement Template for Nigeria

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Key Requirements PROMPT example:

Shareholder Support Agreement

"I need a Shareholder Support Agreement for our Nigerian solar power project company, where three major shareholders will provide financial support up to N500 million each and voting support for key project decisions until January 2025."

Document background
The Shareholder Support Agreement is a crucial document used in Nigerian corporate transactions where certain shareholders commit to providing additional support to a company, typically in scenarios involving project finance, corporate restructuring, or strategic investments. This agreement becomes particularly important when a company requires firm commitments from its major shareholders to ensure financial stability or meet specific project requirements. The document, governed by Nigerian law including CAMA 2020 and relevant securities regulations, details the nature and extent of support, conditions for providing support, and the mechanisms for enforcement. It's commonly used in conjunction with facility agreements, project documents, or as part of larger corporate transactions, providing assurance to stakeholders about the company's ongoing support from its key shareholders.
Suggested Sections

1. Parties: Identification of the supporting shareholders, the company, and any other relevant parties

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

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation

4. Support Obligations: Details of the specific support commitments being made by the supporting shareholders

5. Duration and Termination: Term of the support agreement and circumstances under which it can be terminated

6. Financial Support Provisions: Specific financial commitments, including any funding obligations or guarantees

7. Voting Commitments: Obligations regarding voting rights and decision-making support

8. Representations and Warranties: Statements of fact and assurances from all parties

9. Covenants: Ongoing obligations and commitments of the parties

10. Events of Default: Circumstances constituting breach and their consequences

11. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction details

12. Notices: Process for formal communications between parties

13. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Security Arrangements: Details of any security to be provided for financial support commitments - include if financial support includes secured obligations

2. Step-In Rights: Rights of supporting shareholders to take control in certain circumstances - include if agreed as part of support arrangement

3. Foreign Exchange Provisions: Specific provisions dealing with foreign exchange aspects - include if foreign shareholders are involved

4. Tax Provisions: Specific tax-related obligations and arrangements - include if tax implications are significant

5. Regulatory Compliance: Specific provisions relating to regulatory requirements - include if company operates in regulated sector

6. Assignment and Transfer: Rules for transferring rights under the agreement - include if transfer rights are to be permitted

Suggested Schedules

1. Schedule 1 - Details of the Company: Corporate information, share capital structure, and existing shareholders

2. Schedule 2 - Form of Support Notice: Template for requesting support under the agreement

3. Schedule 3 - Supporting Shareholders' Commitments: Detailed breakdown of each supporting shareholder's specific commitments

4. Schedule 4 - Conditions Precedent: Conditions that must be satisfied before support obligations become effective

5. Schedule 5 - Form of Accession Deed: Template for new parties to join the agreement if permitted

6. Appendix A - Corporate Authorizations: Copies of relevant corporate approvals and authorizations

7. Appendix B - Financial Terms: Detailed financial terms and calculations for support obligations

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Infrastructure

Energy and Resources

Manufacturing

Financial Services

Telecommunications

Real Estate Development

Agriculture

Healthcare

Technology

Transportation

Mining

Oil and Gas

Power Generation

Construction

Relevant Teams

Legal

Finance

Corporate Secretariat

Risk Management

Compliance

Treasury

Corporate Development

Investor Relations

Board Secretariat

Corporate Finance

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Director

Corporate Secretary

Investment Director

Project Finance Manager

Corporate Finance Manager

Risk Manager

Compliance Officer

General Counsel

Board Director

Financial Controller

Treasury Manager

Corporate Development Director

Shareholder Relations Manager

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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