Key Elements of a Shareholder Agreement
One of the primary functions of a shareholders agreement is to determine how the shares of one or more shareholders will be sold or otherwise distributed if they die, become disabled, retire, or otherwise leave the business. These terms are important to protect the remaining shareholders by assuring that they will retain ownership and control of the company.
Our expert attorneys may also recommend several other terms to address various aspects of the business, depending on the specific needs, structures and decisions of the client. These might include:
- Designating who may be a shareholder and/or how must remain a shareholder;
- Documenting the nature and amount of initial contribution of capital funds to the business;
- Defining methods by which future contributions of capital are made as needed;
- Establishing non-compete clause and terms;
- Specifying the fiduciary duties and responsibilities of the shareholders;
- Establishing stock valuation formulas;
- Specifying buyout terms and conditions;
- Establishing a structure to resolve shareholder disputes;
- Establishing ownership and voting rights of the shares; and
- Determining the manner of control and management of the business, which may include a method for electing a board of directors.
We discuss these issues with the shareholders to determine what clauses are needed and how they will be structured so that the shareholder agreement address the specific needs and operations of the company.
Our goal is to create a firm foundation for your company by establishing shareholder guidelines that are responsive to issues that could reasonably arise among its owners. Thrift McLemore provides effective counsel based on our legal expertise and extensive business experience. We strive to draft shareholder agreements that both protect the interests of the shareholders and support ongoing operations of your business.
Additional Legal Services
Our skilled attorneys provide a holistic and comprehensive array of legal services designed to address our business clients’ needs. These include but are not limited to:
- Business Formation
- Contract Drafting
- Business Negotiations
- Commercial Leases
- Business and Consumer Debt Collection
- Employee Agreements
- Restrictive Covenants
- Sale of a Business
- Copyrighting and Trademarking
- Outside In-House Counsel Services
- Agency Compliance
- Non-Compete Agreements
- Non-Disclosure Agreements
- Commercial Litigation