If you`re starting a business with shareholders, it`s important to have a form shareholder agreement in place. This document outlines the roles, responsibilities and rights of each shareholder, as well as how the company will be run and managed. Here are some important things to consider when creating a form shareholder agreement:
1. Shareholder structure: Outline the percentage of shares each shareholder will hold, as well as any special rights or privileges they may have. This will help establish the hierarchy and ownership structure of the company.
2. Decision-making process: Decide how decisions will be made within the company. Will each shareholder have an equal vote, or will some have more weight than others based on their percentage of ownership? Will certain decisions require a supermajority vote, or will they need unanimous approval?
3. Management structure: Determine who will be responsible for managing the day-to-day operations of the company. Will there be a designated CEO or other executives, or will decisions be made by the board of directors?
4. Shareholder responsibilities: Outline the responsibilities of each shareholder, such as attending regular meetings or contributing funds.
5. Exit strategy: Determine what will happen if a shareholder wants to sell their shares or leave the company. This includes outlining how the shares will be valued, as well as any restrictions on who can purchase them.
Having a form shareholder agreement in place can help prevent disputes and ensure that everyone involved in the company knows the roles and responsibilities they have. If you need help creating a shareholder agreement, consider consulting with a lawyer or other legal professional with experience in business law. By taking the time to create a comprehensive agreement, you can help set your company up for success and avoid potential issues down the road.