Navigate the complexities of drafting shareholder and operating agreements with confidence. Our comprehensive guide offers 10 essential tips for entrepreneurs and small business owners seeking to create robust legal agreements. Ensure the success and protection of your business venture with expert advice. Learn how to craft agreements that safeguard your interests and foster growth. Start your journey toward legally sound agreements today.
08 August 2023

10 TIPS FOR DRAFTING BETTER SHAREHOLDER AND OPERATING AGREEMENTS

By Yoel Molina, Esq.

 

Email: fd@molawoffice.com | Office: 305-548-5020 2655
S. Lejuene Road, Suite 500 Coral Gables, FL 33134
 

As a business owner or shareholder of a corporation, having a well-drafted shareholder agreement or operating agreement is essential to protect your interests and ensure the success of the company. Here are 10 tips for drafting better shareholder and operating agreements:
 

  • Clearly define the purpose of the agreement and the roles and responsibilities of each involved party.
     
  • Address the issue of ownership and the percentage of shares or membership interest each party holds.
     
  • Include provisions on how new shareholders or members can be added or removed from the agreement.
     
  • Establish guidelines for decision-making, including the voting process and the percentage of votes required to make decisions.
     
  • Address the issue of share transfer and include provisions on how and when shares can be sold or transferred.
     
  • Include provisions for the protection of confidential information and intellectual property of the company.
     
  • Set a clear plan for profit and loss distribution among shareholders or members.
     
  • Include provisions for company dissolution or agreement termination.
     
  • Address the issue of dispute resolution and establish a process for resolving conflicts between parties.
     
  • Seek guidance from a corporate attorney to ensure the agreement is legally sound and enforceable.
     

In summary, a well-drafted shareholder agreement or operating agreement can provide a framework for the successful operation of a corporation or LLC. By following these 10 tips, you can ensure that your agreement is clear, comprehensive, and protects the interests of all parties involved. As a corporate attorney with a 5-star rating on Google and an excellent rating on AVVO, I invite you to reach out to my office to schedule a consultation and discuss how we can assist you in drafting a better shareholder agreement or operating agreement.

 

 

www.yoelmolina.com 

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