shareholders' agreement

(redirected from Shareholder contract)

shareholders' agreement

n. an employment agreement among the shareholders of a small corporation permitting a shareholder to take a management position with the corporation without any claim of conflict of interest or self-dealing against the shareholder/manager. Such agreements are common when there are only three or four shareholders.

References in periodicals archive ?
Employment law rights can always be written back into the employee shareholder contract anyway as part of good leaver/bad leaver provisions.
In contrast, employee shareholder contracts where employees sign off their employment rights when employment is just starting or continuing have been more rare.
Because the main thing to understand about employee shareholder contracts is that they are all about the tax.
55) Fiduciary duties set guidelines for a board's exercise of such power in disciplining management and, more generally, filling in the gaps of the shareholder contract.
Impact on business Businesses will have to take into account the cost of providing legal advice to an employee before entering into an employee shareholder contract.
The two companies signed a shareholder contract at the Bulgarian embassy in Vienna during the official visit of Bulgarian PM Boyko Borisov to Austria.