Shareholder & Operating Agreements
A good shareholder agreement is the most significant building block on which to found the business. A good shareholder agreement ought to be put in place to ensure that the business runs smoothly. However, many issues emerge when drafting the shareholder agreement. These include buy-ins, buy-outs, operations, finance, and other relative matters.
However, other issues may emerge that are not usually contemplated when entering into a shareholder agreement. The fine print may not cover certain situations in court. That is why an experienced attorney is integral in drafting a proper shareholder agreement.
When stock corporations are organized, one of the most important documents is the shareholder operating agreement. This document will determine how the company will conduct certain business affairs and who may determine the direction that the business will take. Depending on how this agreement is drafted, the potential of shareholder lawsuits can be minimized.
New York is a hotbed of corporate litigation and shareholder litigation. This is due to New York being an international hub for business.
When it comes to corporate disputes and lawsuits, Miami has the distinction of operating a Complex Business Litigation division for cases that become complicated and cannot be resolved by means of mediation and arbitration. When corporate lawsuits are filed by their own shareholders, things can get complicated, but this is something that can be avoided with the right shareholder operating agreement.
It is important to keep in mind that shareholder agreements must be executed in practice. “Executed into practice” means that the rights of shareholders must be upheld at all times. Sometimes this fails to happen because of malfeasance or lack of good faith. In that case, derivative lawsuits can be filed against the corporate board.
Shareholder Operating Agreements
Shareholder agreements need not be complex; however, they must present the right amount of detail in order to prevent lawsuits. On the other hand, you do not want to draft a shareholder operating agreement to be so strict and onerous. If that happens, the shares of the company will become unattractive to prospective investors.
Are you a shareholder of a corporation and concerned about how the corporate officers are managing the business? Are they not providing information to shareholders like you? Then you ought to hire the right legal team to assist you.
Shareholder Rights Investigations, Breaches and Lawsuits Attorney.
How We Help Shareholders – The right attorney will help clients deal with a myriad of issues, including the following:
- The rights and obligations of majority and minority shareholders, officers, and directors
- Understanding corporate procedures and compliance, voting, resolutions, and other procedural issues
- Conflict resolution, including negotiation, mediation, and arbitration
- The need for proactive procedures to ensure officers and directors are behaving in good faith and in the best interests of the corporation
- How to deal with unfair or illegal actions, fraud, breaches of fiduciary duty, trade secrets, and unfair competition
- Employment questions, including compensation, severance, pension benefits, stock plans, and more
- Defending and protecting your rights as a corporate shareholder
- Handling shareholders’ derivative lawsuits
- Conducting inquiries into the protection of rights as shareholders
Our law firm dedicated to protecting the rights of business owners, corporations, business partners, and shareholders. We will counsel you and provide the necessary legal advice to navigate lawsuits and other situations.
Contact us to learn more about how we can help ease your shareholder agreement concerns.
We can assist you in drafting the correct and proper shareholder agreement.