We typically draft one or more shareholders agreements for our clients, depending on the company’s complex management structure. We provide a style that’s suitable for the company, tailoring the content to the realities of startup companies and reflecting the company’s in-depth management structure.
The shareholders agreement may set forth the responsibilities and limits of the directors, management, and the board.
Different shareholders agreements say different things on specifics concerning their particular situation. However, they all usually include the following which are among the most important elements:
A shareholders agreement can reduce conflict between shareholders and managers in two ways: first by providing for a shareholder’s veto power; second by requiring shareholders to approve big decisions and significant transactions like mergers and capital investments, borrowing, shareholder sales, and executive compensation.