{"id":29507,"date":"2025-12-04T12:05:27","date_gmt":"2025-12-04T12:05:27","guid":{"rendered":"https:\/\/thelegalcompany.nl\/?p=29507"},"modified":"2026-09-02T05:52:10","modified_gmt":"2026-09-02T05:52:10","slug":"what-do-you-arrange-with-your-fellow-shareholders-in-a-shareholders-agreement-and-the-articles-of-association-there-is-a-lot-of-contractual-freedom-but-it-is-not-unlimited","status":"publish","type":"post","link":"https:\/\/thelegalcompany.nl\/en\/what-do-you-arrange-with-your-fellow-shareholders-in-a-shareholders-agreement-and-the-articles-of-association-there-is-a-lot-of-contractual-freedom-but-it-is-not-unlimited\/","title":{"rendered":"What do you arrange with your fellow shareholders in a shareholders’ agreement and the articles of association? There is a lot of contractual freedom, but it is not unlimited"},"content":{"rendered":"

As an entrepreneur, the shareholders’ agreement is a flexible instrument for shaping cooperation with your fellow shareholders or co-entrepreneurs. Unlike the articles of association, the shareholders’ agreement is centred on freedom of contract, flexibility and tailor-made arrangements. Under the law, the shareholders’ agreement can contain more far-reaching arrangements than are possible in the articles of association. However, that freedom of contract is not unlimited. Where arrangements in the shareholders’ agreement conflict with the articles of association, this can lead to major legal and practical problems. The well-known Kekk\/Delfino<\/a> case illustrates this problem well and offers valuable insights.<\/p>\n

The conflict in Kekk\/Delfino<\/strong><\/h4>\n

In the Kekk\/Delfino case, a director was faced with a proposed dismissal by the general meeting of shareholders. The articles of association prescribed a two-thirds majority of votes for such a resolution, in line with Article 2:244 of the Dutch Civil Code. The shareholders’ agreement, however, stated that dismissal was only possible by unanimous decision.<\/p>\n

The director relied on that unanimity requirement and claimed performance of the contractual arrangements. The district court agreed. The court of appeal, however, reached a different conclusion. According to the court of appeal, performance of the unanimity requirement was unacceptable under Article 2:8(2) of the Dutch Civil Code. The decisive factor was that there was a disrupted management relationship and an impending deadlock. The company would be seriously harmed as a result. The court of appeal thus explicitly chose the interests of the company over the contractual freedom of shareholders. The director’s dismissal was therefore upheld.<\/p>\n

Practical points of attention for shareholders’ agreements and articles of association<\/strong><\/h4>\n

For entrepreneurs, it is crucial not to view the articles of association and the shareholders’ agreement in isolation from one another, but as communicating vessels. Conflicting provisions cause problems especially once relationships come under pressure, for example when a director is dismissed or important strategic decisions are made. When drafting arrangements, therefore, think not only about what feels logical now, but also about how these arrangements will play out in a conflict situation. Unanimity requirements (everyone must be in favour) often seem like a safe safeguard, but can sometimes lead to management deadlocks that are in turn harmful to day-to-day business operations. Therefore always consider whether a qualified majority or another voting structure (a different type of share) would better suit the company.<\/p>\n

In addition, it is important, when drafting the shareholders’ agreement, to always keep the interests of the company in view. Courts are increasingly willing to intervene where contractual arrangements hinder the functioning of the company. Make sure, therefore, that arrangements are not only clear as between the shareholders themselves, but also remain workable for the company.<\/p>\n

Finally, it is wise to regularly check whether the articles of association and the shareholders’ agreement still align with your current situation and day-to-day business practice, especially as the company grows with new activities, shareholders join or leave, or roles shift. Timely realignment prevents outdated arrangements from working against you in a conflict situation.<\/p>\n

We, the corporate lawyers at The Legal Company, specialise in drafting shareholders’ agreements and aligning them with the articles of association. We also have extensive experience in amicably resolving conflicts between shareholders. Please feel free to contact us at info@thelegalcompany.nl<\/strong><\/a> or call 020-3450152<\/strong>.<\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

As an entrepreneur, the shareholders’ agreement is a flexible instrument for shaping cooperation with your fellow shareholders or co-entrepreneurs. Unlike the articles of association, the shareholders’ agreement is centred on freedom of contract, flexibility and tailor-made arrangements. 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