Deadlock Resolutions

This template offers four distinct deadlock resolution provisions tailored for 50:50 private companies, addressing both individual and corporate shareholders.  Deadlock provisions are vital in 50:50 companies for several reasons:

1. Prevent Stalemates: They provide a structured process to resolve disputes when shareholders or directors cannot reach a unanimous decision, preventing operational paralysis. 
2. Maintain Business Continuity: By offering clear steps to resolve deadlocks, these provisions help ensure that the company can continue to operate smoothly without prolonged interruptions. 
3. Protect Interests: They safeguard the interests of both shareholders by ensuring that neither party can unilaterally control the decision-making process, promoting fairness. 
4. Reduce Conflict: Having predefined mechanisms for resolving deadlocks can reduce the potential for personal conflicts and legal battles between shareholders. 
5. Provide Exit Strategies: They offer clear exit strategies, such as buy-sell procedures or winding up the company, which can be crucial if the deadlock cannot be resolved amicably. 

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Publisher’s Notice:

Note: This publication does not necessarily deal with every important topic, nor cover every aspect of the topics with which it deals. Templates do not include or provide legal or other advice to users. They are designed to provide a head-start to the development of a commercial agreement and are not the finished article. They require careful reading, analysis and customisation in order to meet the particular needs of the parties to the document. 

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