Shareholders Agreement Format for Startup
1. Introduction
This Shareholders Agreement (the "Agreement") is made and entered into as of [Date] by and among [YOUR COMPANY NAME], a [State] corporation (the "Company"), and the following shareholders (collectively referred to as the "Shareholders"): [List of Shareholders].
2. Purpose
The purpose of this Agreement is to establish the rights and obligations of the Shareholders with respect to the Company, including the governance, management, and operation as well as the transferability of shares in the Company.
3. Share Ownership
3.1 Shareholder Ownership
Each Shareholder's ownership of shares in the Company shall be recorded in the Company’s books. The initial number of shares held by each Shareholder is as follows:
3.2 Shareholder Rights
Each Shareholder shall have the rights and obligations as set forth in this Agreement and under applicable law. These rights include voting rights, rights to dividends, and rights to information regarding Company affairs.
4. Corporate Governance
4.1 Board of Directors
The management and control of the Company shall be vested in a Board of Directors elected by the Shareholders. The Board shall consist of 12 directors.
4.2 Meetings
Meetings of the Board of Directors and Shareholders will be held at [YOUR COMPANY ADDRESS], with proper notice given to all participants. The frequency of meetings shall be at least 4, but special meetings may be called as necessary.
5. Transfer of Shares
5.1 Restrictions on Transfer
No Shareholder shall sell, assign, transfer, pledge, or otherwise dispose of any shares of the Company without the prior written consent of the other Shareholders, except as provided in this Agreement.
5.2 Right of First Refusal
In the event that a Shareholder desires to transfer shares, the other Shareholders shall have the right of first refusal to purchase such shares on the same terms and conditions offered by a third party.
6. Dispute Resolution
In the event of any dispute arising out of or relating to this Agreement, the parties shall first attempt in good faith to resolve the dispute amicably. If the dispute is not resolved within [Number] days, it shall be submitted to binding arbitration in accordance with the rules of [Arbitration Organization].
7. Miscellaneous
7.1 Termination
This Agreement shall terminate upon the occurrence of any of the following events: dissolution of the Company, mutual agreement of the Shareholders, or as otherwise provided herein.
7.2 Amendment
This Agreement may be amended only by a written agreement signed by all of the Shareholders.
8. Signatures
IN WITNESS WHEREOF, the parties have executed this Shareholders Agreement as of the date first above written.
[YOUR NAME]
Shareholder
Shareholder
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