The shareholder buy-sell agreement allows you to organize the administration of your business corporation and plan the disposition of shares upon the death or withdrawal of a shareholder from the corporation. A Shareholders' Agreement is simply an agreement governing the relationship between the shareholders of a company.
These include their rights and obligations, transfer of shares, how the company is going to run and how important decisions are to be made. Thus shareholders agreement contains rights and obligations of shareholders of a company, and it also covers matters, governing the management and the structure, initial funding, as well as the administration and business activities of the Company.
A shareholders Agreement is a significant and useful document, because it provides a mechanism for setting out the principles. Upon which the shareholders or partners, in a joint venture agree to run their business.
Shareholders Agreement Procedure
- A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Shareholders Agreement to be executed by you.
- Once the objectives of the same are clear, the lawyer shall draft a sample Shareholders Agreement accordingly.
- The draft Shareholders Agreement shall be sent to you, for your review.
- The whole process takes around 3-4 working days.
Advantages of a Shareholders' Agreement
A Shareholders' Agreement clarifies all the powers of a shareholder and the rights you reserve as the issuer of such shares by defining the rights and liabilities of all. Moreover, it acts as a regulator of the relationship between small and large shareholders.
The process for voting on resolutions is also defined in the shareholders agreement along with major items that require prior written consent of the shareholders and/or Directors and a Resolution passed by the Board of Directors.
Shareholders' Agreements are perfect for small and medium companies that don't want to formally amend the constitution every time there is a small change.