A simple shareholder agreement plays an important role in your company. This will create a huge impact on how decisions are made in the corporation. Always remember that when writing an agreement it must be detailed, it will also describe how you will run the business, how a dilemma must be managed and must state or clarify the responsibilities and privileges of every shareholder.
1. Identify your Shareholders
A shareholder agreement is also called a business agreement so, therefore, it must identify the legal names of every shareholder, their recent address, and lastly the phone number of every shareholder. Aside from that, you must also select a batch of officers and nominate someone who is going to be the managing shareholder.
2. State the Responsibilities of the Shareholders
The main purpose of having a well-written agreement is to avoid arguments between your shareholders. That is why you must state the responsibilities of everybody and at the same time, you must set the rules and regulations to avoid conflicts. This agreement must be strict regarding the actions of any shareholder that can take the name of the corporation so that whenever an issue arises, you will know how to handle the problem by determining the steps stated in your sample agreement.
3. Legal Obligations of Each Party in the Agreement
Aside from stating the responsibilities in your shareholders' agreement, you must also discuss the obligations of each party involved. You must state in your agreement the legal obligations of every individual who signs the contract agreement.
4. The Proper Distribution of Shares
Dividing the shares in your corporation is an important part that is why you must state it in your exclusive agreement. Remember that you must divide shares fairly among all the shareholders to avoid misunderstanding between them.
5. Develop the Exit Strategy
If you want your shareholders' agreement to be successful then you must develop a proper exit strategy. An exit strategy is very essential in creating an agreement and it will also determine what will happen next in the business that you want to render. Always keep in mind that the shareholders' arrangement is one of the heart and soul of your business so when you write your shareholders' agreement badly, then it will cause the individuals to lose their interest in the business.