If you’ve incorporated a business with multiple shareholders or are planning to, consider establishing a Shareholders’ Agreement. This agreement can shift some powers from the board of directors to the shareholders, creating a framework for managing various situations that may arise throughout the business’s lifespan.
A common reason for business failure is shareholder disputes. A well-drafted Shareholders’ Agreement can mitigate these disputes, providing a cost-effective problem-solving method, allowing owners to focus on running a successful business. Consider it a prenuptial agreement for your business, making important decisions about the company’s future while everyone agrees. The content is flexible and customizable to the needs of the shareholders and the business.
For more information on the importance of a Shareholders’ Agreement and assistance in creating one, contact us.
