Articles Tagged with Shareholder Agreement

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Fotolia_194134312_Subscription_Monthly_M-300x200It may seem simple to try and put together a shareholder agreement on your own. However, a carefully drafted shareholder agreement is imperative to how your business functions in the present, but more importantly how you might need to handle things in the future. You will want your shareholder agreement to be carefully drafted to match your business’ specific needs. Even though every shareholder agreement will be different, there are some common components that most shareholder agreements include.

Governance Procedures

The shareholder agreement can outline how often meetings should be held. It can also describe the process for general or special meetings, quorum needed for specific types of matters, and how notices for the meetings should be sent. The addition of theses details not only spells out the procedural process, but also notifies members of their duties and rights as a shareholder.

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In this day and age of online accessibility, all you have to do is a quick Google search to find an array of sample shareholder agreements at your disposal. While it may seem much easier to pay a few dollars and use an online template for your agreement than to consult with a business attorney, using a template can often result in costly legal disputes down the road. A shareholder agreement should always be uniquely tailored to address the specific circumstances of your corporation and a one-size-fits-all template will almost certainly miss some key issues or provisions.

Businessman signing a contract
A shareholder agreement will differ from company to company though these agreements generally set guidelines for shareholder rights, management of the corporation, and legal recourse in the event of a dispute. The following are some provisions that can be key in a shareholder agreement:

Shareholder Rights

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