Corporate Shareholder Agreements Attorneys
When a corporation has two or more shareholders, it is important to have a shareholders’ agreement drafted in order to outline each shareholder’s responsibilities to one another. A shareholder agreement can be the key to the successful operation of a business. It is a private contract between shareholders that can remain confidential, allowing the ability to insert terms that shareholders would prefer to not be accessed by third parties.
At the law firm of Burns & Hansen, P.A., our Minnesota business law attorneys provide comprehensive counsel and representation for every facet of operations, including the drafting of shareholder agreements and other agreements during the formation process. We help our clients figure out how to achieve their goals in a creative and cost-effective manner.
Essential Shareholder Agreement Terms
A shareholders’ agreement should outline many aspects of your business, including:
- Nature and amount of initial contribution of capital funds to the business
- Method by which future contributions of capital are made
- Noncompetition terms
- Stock valuation formulas
- Buyout terms and conditions
- Governing law of shareholders’ disputes
- Ownership and voting rights of the shares
- Manner of control and management of the business such as method for electing directors
Given how important a shareholders’ agreement is to the day-to-day operations of a corporation, it is important to prepare the agreement promptly after filing a corporation and should be done correctly with the help of an experienced lawyer.