To protect their minority interests, it is advisable for foreign shareholders of LLCs to include terms addressing the following in the memorandum of association (MOA) (often the first point of reference in the event of any disagreement):
Foreign shareholders should also supplement the MOA with a shareholders’ agreement which contains further provisions addressing the relationship between the shareholders and their respective rights and obligations.
Most important of all, careful selection of a local shareholder partner can provide the foreign shareholder with autonomy to carry out and operate the business of the LLC within the parameters of the law but without problematic interference.
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