shareholders' agreement

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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 ?
Shareholders' agreements prevent sit-|uations where changes in one shareholder's personal circumstances can have a material impact on the company or other shareholders, safeguarding each shareholder's financial interest in the company and the interest of the shareholder's family in the event of a death.
WHEN individuals get together to set up a new company, they very rarely bother to have a shareholders' agreement drafted.
Not unlike a 'prenup', Shareholders' Agreements provide shareholders with certainty as to the nature of their retationship with each other, and assist in progressing the development of the company and protection of each shareholder's initial investment.
Important provisions generally found in Shareholders' Agreements include:
Shareholders' agreements can save both a friendship and a business.
We have many clients who indicate they do not need a shareholders' agreement on the grounds of cost and because they are going into business with a family member or a friend they have known and trusted for many years.
Shareholders' agreements regulate the dealings between shareholders and put in place a framework through which the ongoing relationship between them can be managed.
Where more than one person is to hold shares in a company, even one founded on a long standing friendship or business arrangement, the value of a properly drafted shareholders' agreement cannot be overstated.
SHAREHOLDERS' AGREEMENTS IN CLOSE CORPORATIONS AND THEIR ENFORCEMENT IN THE UNITED STATES OF AMERICA*
Frequently, shareholders' agreements do not adequately deal with the relationship among different exit strategies contained in a shareholders' agreement.
Upon and subject to the consummation of the transactions contemplated in the purchase agreement or, alternatively, the option agreement entered into by Globopar and Telmex on 06/27/04, the parties (together with the special purpose company that will hold a part of their investments in Net, the "SPC") will enter into certain shareholders' agreements containing provisions relating to transfer of shares, rights of first refusal, governance and other matters typical of such arrangements.
The two parties have signed the Combination and Shareholders' agreements, in presence of the President of the PRC during his State visit in France and the French prime minister.