Are you about to form a company with another person? Are you one of the shareholders of an existing company operating without a shareholder agreement?

Then you should have a written agreement covering such things as:

  • Rights and obligations of shareholders
  • Restrictions on the sale of shares, and how a shareholder can exit the company
  • Management of the company
  • Financing the business
  • Payment of salaries, bonuses, and dividends
  • Purchase of the shares of a deceased shareholder, and,
  • Restrictions on the competition by a former shareholder

Minimize the potential for lawsuits between shareholders through a proper shareholder agreement!

For more information regarding the issues addressed in this blog post, please feel free to contact me directly.

John S. Grant

Associate – Business Law and Commercial Real Estate Law Group

Disclaimer: This article is provided as an information resource. This article should not be relied upon to make decisions and is not intended to replace advice from a qualified legal professional. In all cases, contact your legal professional for advice on any matter referenced in this document before making decisions. Any use of this document does not constitute a lawyer-client relationship. Please note that this information is current only to the date of posting. The law is constantly changing and always evolving.


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