What is an accession agreement? An accession agreement is also called an instrument of accession or an instrument of accession and is an instrument that binds a person to an existing shareholders` agreement. This prejudges the need for a new shareholders` agreement each time a new shareholder enters the company. The agreement may also mention that all disputes arising from the Treaty fall within the exclusive jurisdiction of a given court. The reason it is prepared as an instrument and not as an agreement is to ensure that it is enforceable. Indeed, unlike an agreement, an instrument does not need a counterpart of the counterparty. The agreement must clearly indicate the names of the parties between whom the agreement is concluded. The parties are usually the company and the new shareholder. The date on which the agreement is concluded must also be indicated at the same time as the area in which the agreement is applicable. As a rule, a document answers the question „What is the condition for membership“ in a country. The instrument of accession is often annexed to the shareholders` agreement in the form of an annex. If this agreement is established, it will be part of the shareholders` agreement. Therefore, a breach of an instrument of accession may be considered a breach of the shareholders` agreement. Therefore, all remedies brought by the shareholders` agreement for breach of its clauses apply in the event of a breach of an accession agreement.
With the exception of an instrument of accession, accession agreements may have different formats and fall within the scope of international, civil or property law. When new people invest in the company, they receive shares and become shareholders. They are not automatically bound by the provisions of the shareholders` agreement, but they must be in one way or another in such a way that the provisions that apply to all original shareholders also apply to them. Therefore, the purpose of this agreement is to ensure that a new shareholders` agreement is not required each time a new shareholder joins the company. By the sole signature of an instrument of accession, they may be registered as shareholders of the company and are bound by the same rules as those applicable to existing shareholders. It is a great advantage to add some form of membership instrument to your shareholders` agreement. This saves lawyer`s fees, as you don`t need to create a new shareholders` agreement every time a new investor arrives on board. Instead, you can insert the investor`s details into the membership instrument and have them sign as soon as they become a shareholder. This is where the instrument of accession comes into operation. A new shareholder (who is not a party to the shareholders` agreement) may sign an instrument of accession to the shareholders` agreement. The signature of the instrument of accession binds the new shareholder to the provisions of the shareholders` agreement, as if he were a party.
The instrument of accession should ideally be signed as soon as the new shareholder becomes a shareholder, so that it is immediately bound by the terms of the shareholders` agreement. . . .