Sample Agreement For Shareholders

State:
Multi-State
Control #:
US-00624
Format:
Word; 
Rich Text
Instant download

Description

The Sample Agreement for Shareholders is a legal document designed to outline the terms and conditions under which shareholders of a corporation can buy and sell their interests. Key features include provisions for the sale of shares upon a shareholder's death, the option for the corporation to purchase those shares, and procedures for transferring ownership among shareholders. The agreement requires written notice for any intended sale, and it stipulates the valuation of shares to be determined annually. This agreement can be amended with the consent of all shareholders and is binding on their heirs and legal representatives. It serves as a critical tool for ensuring smooth transitions in ownership and maintaining the corporation's stability. Attorneys, partners, and owners may find this form essential for governance and risk management, while paralegals and legal assistants can use it to facilitate the drafting, filing, and compliance with regulatory requirements in corporate law.
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FAQ

Ten Questions You Should Ask When Negotiating a Shareholders Agreement Who should be a party to the Shareholders Agreement? ... What is the Company's Capital Structure? ... How will the Company be governed? ... What matters will require shareholder approval? ... Are there any restrictive provisions required?

What to Think about When You Begin Writing a Shareholder Agreement. ... Name Your Shareholders. ... Specify the Responsibilities of Shareholders. ... The Voting Rights of Your Shareholders. ... Decisions Your Corporation Might Face. ... Changing the Original Shareholder Agreement. ... Determine How Stock can be Sold or Transferred.

A good shareholders agreement should set out the decisions a shareholder-director may and may not make without agreement from others. These are known as reserved matters. Disclosure of decision making is also important. A shareholder-director may be able to make decisions that aren't reported to other shareholders.

For example, if you own 10% of the company's shares and you have a tag along right, you would be given the opportunity to sell 10% of the total parcel of shares that are being sold. This type of clause would typically result in shareholders selling some of their shares, but none of them being able to sell all of them.

A shareholders' agreement includes a date; often the number of shares issued; a capitalization table that outlines shareholders and their percentage ownership; any restrictions on transferring shares; pre-emptive rights for current shareholders to purchase shares to maintain ownership percentages (for example, in the ...

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Sample Agreement For Shareholders