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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 Seven

Shareholder Agreements: 7) Death of a shareholder The death of a shareholder can paralyze a company that has not prepared for it. Surviving shareholders will likely not want to be in business with the heirs of the dead shareholder, as they may not have the necessary experience or interest, or simply may not be compatible [...]

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 One

If your company has more than one shareholder, you should have a shareholders agreement. While they can be costly and a pain to negotiate, they anticipate problems, prevent misunderstandings and generally pay for themselves many times over when difficulties arise. In this eight-part blog on shareholder agreements, we will cover areas such as financing, distribution [...]

Located in: Corporate and Commercial Law