Aspects of Shareholder Agreements

Many businesses allow the public to invest in them through shares. These investors are known as shareholders, and when they own a share of a company, they are part of a legally binding shareholder agreement, which stipulates the actions and responsibilities of both a company and its shareholders.

Creating a quality shareholder agreement is very important for any business that wants shareholders to invest in it, but such creation can be overwhelming if you’re not familiar with these agreements. However, an experienced Austin corporate law attorney of Adam Pugh, can help you create the most comprehensive and effective shareholder agreement for your company. Learn more about our services by calling today.

Important Aspects

Shareholder agreements stipulate many things, all of which outline a shareholder’s relationship to his or her shares and to the company itself. Some of the important aspects of many shareholder agreements include regulations regarding:

• Who can invest in a company
• The value of each stock/share
• Board of Directors for shares
• Results of shareholder sickness/illness/death
• Possible insurance policies for shares

Though the wording of each shareholder agreement for different companies will differ, its basic principles remain the same; shareholder agreements outline an investor’s share in the company and the legal actions that both a shareholder and a company can take.

Contact Us

If you and your company are in need of creating a clear, appealing shareholder agreement, then the Austin corporate lawyers of Adam Pugh, can help. Contact Slater Pugh to discuss the services we can offer to you and your company.