Basic Operating Agreement Template for South Africa

1. Pre-emptive Rights: Gives existing members first right to purchase interests being sold - include when requested by members

2. Tag-Along Rights: Allows minority members to join in sale of majority interests - recommended for multiple member businesses

3. Drag-Along Rights: Enables majority to force minority to join in sale - useful for future exit planning

4. Non-compete Provisions: Restricts members from competing activities - include when protecting intellectual property or market position

5. Dispute Resolution: Detailed procedures for resolving conflicts - recommended for complex operations or multiple members

6. BEE Compliance: Specific provisions for B-BBEE compliance - include if relevant to business sector or size

7. Intellectual Property: IP ownership and usage rights - include if business involves significant IP

8. Employee Matters: Framework for employment decisions - include if business will have employees

1. Schedule 1: Member Details: Detailed information about members including contact details and initial capital contributions

2. Schedule 2: Initial Capital Contributions: Itemized list of all initial capital contributions including valuations

3. Schedule 3: Business Plan: Initial business plan and operational framework

4. Schedule 4: Management Structure: Detailed management structure and responsibilities

5. Schedule 5: Voting Rights: Detailed breakdown of voting rights and procedures

6. Appendix A: Specimen Signatures: Signature specimens of authorized signatories

7. Appendix B: Company Forms: Standard forms for company procedures (e.g., transfer forms, proxy forms)

8. Appendix C: Compliance Checklist: Checklist of regulatory compliance requirements