INTRODUCTION
This article discusses the uses of formal agreements between shareholders of a private company and the company.
The term “shareholder agreement” is used to describe such agreements, although differences in scope of such agreements means that the term is not really a hint as to the contents of the agreement. Some only set out a method of having one shareholder buy out another in the event of a dispute. Others deal with the consequences of the death of a shareholder. Others set out rules for determining company policy and management. Yet others give certain shareholders rights to acquire or dispose of shares in certain circumstances. Often agreements combine all or several of these aspects.
Shareholder agreements are discussed under the following headings.
- Dispute Resolution
- Restrictions on Share Transfers
- Outside Offer
- Death
- Short Term Disability
- Long Term Disability
- Management
- Puts
- Calls
- Financing
- Defaults
- Employment
- Management Companies
- Key Players
- Upkeep
- Timing & Conclusion
Disclaimer: The information provided on Rikvin international is not intended to be legal advice, but merely conveys general information related to Shareholder agreement issue.