If you are thinking of starting a company or if you already have one that is still developing, a shareholders agreement is necessary. A shareholder’s agreement such as one discussed at founderdocuments.wordpress.com is a written agreement where in a variety of issues are discussed so that if disputes arise in the future, the shareholders in the company have a valid reference to examine and rely on for the resolution of issues. This agreement ensures that even when issues arise in the future, the company will keep on going until the problems are resolved. This type of agreement requires legal knowledge so unless you have sufficient knowledge and background on legal matters, it is best to leave this to a solicitor. However, with the right tools and guides, you can still be able to draw your own shareholder’s agreement.
What Items Should You Include in the Shareholder’s Agreement
Here are some of the elements that should be included in the shareholder’s agreement:
- Qualifications and requirements to be a shareholder
- Qualified board of directors
- Resolution in case any shareholder faces disability or death, files for bankruptcy or resignation, or is fired
- Worth of the stock shares
- Determination of the necessity of the company to purchase the shares of the shareholder who is leaving
- Price for the purchase of the shares aforementioned
The items in the shareholder’s agreement must contain terms and conditions based on the general principles of contract law, which is why a solicitor who has the expertise in this field must be hired. Sites like founderdocuments.wordpress.com may provide enough information and guides on how you can generate a legal writing such as this. The shareholder’s agreement is designed to resolve any disputes in the management and control of the company and never in any case should be used to deceive anybody.