How Fresh Legal Perspective Can Help
If you are a business owner, have you established growth and succession strategies for your business? For example, have you established the shareholders and directors of your company and how someone could become a shareholder or director in the future? What are the responsibilities of shareholders and directors? What would happen if an owner wants to leave the company or if an owner becomes disables, gets divorced, or dies?
Shareholder Agreements clarify the understanding regarding all of these issues and more for business owners. If you schedule a consultation, the experienced business law attorneys at Fresh Legal Perspective can provide legal counsel in designing, negotiating, and drafting effective Shareholder Agreements.
What to Expect from a Shareholder Agreement
Shareholder Agreements provide a legal framework to direct and protect both the company and the owners through difficult circumstances. A Shareholder Agreement can be used to set out rights for minority owners, to provide restrictions on the transfer of ownership, and to create rules to assist in business succession.
A professionally drafted Shareholder Agreement should contain “Buy-Sell” provisions. These provisions govern how an owner may exit the company. The exit may relate to the owner’s retirement, death, disability, divorce, bankruptcy, or wrongful action. The “Buy-Sell” provision will set forth the price paid for the owner’s interest in the company and the method for transferring the owner’s interest in the company.
Shareholder Agreements should be updated regularly to ensure that the Shareholder Agreement reflects the changing goals of the owners and the objectives of the company.
Our firm can assist in the creation of a new Shareholder Agreement or the review of an existing one. To retain our services, please contact us today.
This portion of the site is for informational purposes only. The content is not legal advice.