Blog Bite: How can a shareholders' agreement help a start-up company and what situations could potentially arise that could be navigated through a shareholders' agreement?

This article posted on our partner site Mondaq.com discusses the use of a shareholders’ agreement to confront the challenges that arise when building a successful company.

A properly drafted shareholders’ agreement can roadmap the foreseeable and unforeseeable twists and turns associated with growing a business. The article lays out scenarios that could be adequately dealt with through a shareholders’ agreement. These scenarios include: if one person wants to sell and others do not; if investors are requiring the formation of a board of directors but the partners do not want to lose control of the company; and if one partner leaves who has a required knowledge or skills set for the company to run adequately.

This comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!


Written by Alina.