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.