A shareholders` agreement is a legal document that outlines the rights and obligations of shareholders in a company. Frequently, these agreements are signed by shareholders when they initially invest in the company, or when changes occur that require an update to the agreement.

However, when it comes to executing a shareholders` agreement, companies have two options: sign it as a simple contract or execute it as a deed. While both methods are legally binding, executing a shareholders` agreement as a deed offers additional benefits.

Firstly, a deed provides greater legal certainty by preventing any future claims that the agreement was signed under duress or with a lack of understanding of its implications. By executing a shareholders` agreement as a deed, the signatories must acknowledge that they understand the terms and that they are signing the agreement willingly and are aware of its consequences.

Secondly, the execution of a shareholders` agreement as a deed may be advantageous in situations where the investor or the company is deemed a minor or has a legal disability. In such cases, a deed is a better option as it can still be legally binding even in the absence of certain legal capacities.

Additionally, a signed shareholders` agreement that is executed as a deed can be enforced for a longer period. Unlike a simple contract that usually has a statute of limitations of six years, a deed can be enforced for up to 12 years.

In conclusion, executing a shareholders` agreement as a deed is always a better option due to its legal benefits. It provides greater legal certainty, is enforceable for a longer period, and can be used in situations where legal capacity is limited. It is always advisable that investors and companies hire legal professionals to ensure that the shareholders` agreement is executed correctly as a deed.