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Shareholder Agreements – Part Eight

Shareholder Agreements: 8) Other agreements with shareholders Employment Contracts If a shareholder will be running the business, an employment contract is a good idea. A clause can be added so that a breach of the employment contract triggers a default under the shareholders’ agreement. Non-Competition, Non-Solicitation and Confidentiality Agreements In general, shareholders should not be [...]

Located in: Corporate and Commercial Law

Shareholder Agreements – Part Six

Shareholder Agreements: 6) Defaulting shareholders A shareholder agreement can provide remedies in the event that a shareholder defaults in his or her obligations to the company, or if the circumstances of a shareholder change fundamentally. For example, if a shareholder quits his or her job with the company, goes bankrupt, or becomes physically or mentally [...]

Located in: Corporate and Commercial Law

Shareholder Agreements – Part Four

Shareholder Agreements: 4) Restrictions on Share Transfer Shareholders generally want some control over who the other shareholders will be. At the same time, this expectation needs to be balanced with allowing shareholders to leave the company when they choose, and for a fair price. A shareholder agreement normally allows shareholders to sell to outsiders only [...]

Located in: Corporate and Commercial Law