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 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 leavers 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!

 

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This article is provided for informational purposes only and does not create a lawyer-client relationship with the reader. It is not legal advice and should not be regarded as such. Any reliance on the information is solely at the reader’s own risk. Clausehound.com is a legal tool geared towards entrepreneurs, early-stage businesses and small businesses alike to help draft legal documents to make businesses more productive. Clausehound offers a $10 per month DIY Legal Library which hosts tens of thousands of legal clauses, contracts, articles, lawyer commentaries and instructional videos. Find Clausehound.com where you see this logo.

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