Set the ground rules for ownership, voting, and share transfers from day one.
We draft a custom Shareholder Agreement that defines rights, responsibilities, and what happens if ownership changes, preventing future disputes.
Common Questions, Clear Answers
A Shareholder Agreement protects all shareholders by establishing clear rules for ownership, voting, share transfers, and dispute resolution. It prevents conflicts by addressing what happens if a shareholder wants to leave, dies, divorces, or if the company needs additional capital. It's essential for any corporation with multiple shareholders.
A buy-sell provision (also called a buyout clause) outlines what happens when a shareholder wants to sell shares or must leave the company. It typically includes valuation methods, payment terms, and right of first refusal for existing shareholders. This prevents shares from falling into unwanted hands and ensures fair treatment.
Yes! Most Shareholder Agreements include transfer restrictions to maintain control over who owns the company. Common provisions include right of first refusal (existing shareholders can buy before outsiders), approval requirements for new shareholders, and restrictions on transfers to competitors.
Bylaws govern the corporation's internal operations and procedures. Shareholder Agreements are contracts between shareholders covering ownership rights, restrictions, and obligations. Both are important - bylaws are usually required, while Shareholder Agreements are optional but highly recommended for corporations with multiple shareholders.
