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 ?
Sacks agreed to terminate the joint voting provisions of a stockholders' agreement between them and IPMD GmbH, the largest stockholder of the Company.
Muhyiddin witnessed the inking of the stockholders' agreement of PMB Tijari with the Islamic Corporation for the Development of the Private Sector, a subsidiary of Jeddah-based Islamic Development Bank.
The agreement also provides for changes in the proposed Stockholders' Agreement and Registration Rights Agreement that will be entered into in connection with the Plan.
1) Typically, a stockholders' agreement will restrict transfers of stock, protect an S election, and preclude competition and disclosures of information.
Paul Kreth claims investors in the corporation have breached the stockholders' agreement and won't allow him to combine the North Little Rock and Little Rock locations of the restaurant under one management company.
While the Internal Revenue Code requires that securities held by employee stock ownership plans (ESOPs) be independently appraised, other types of plans may determine the value of nonpublicly traded employer securities under a formula contained in a stockholders' agreement or a specific formula applicable to the plan's securities (such as for preferred stock).
The Fairchild Corporation (NYSE: FA) announced today that Jeffrey Steiner and his family, and Phoenix FA Holdings LLC have reached agreement on all material terms of a Stockholders' Agreement.
However, the Court held, "Taub fails to recognize that several of the rights modified in the stockholders' agreement were Madugula's rights as a shareholder.
0% of the shares of common stock of GNC and, according to the terms of the GNC Stockholders' Agreement, is entitled to vote 100% of the common stock.
a subsidiary of Unilever, and Holdings amended and restated the Stockholders' Agreement dated as of May 3, 2002 among the parties (as amended and restated, the Stockholders' Agreement).
Khasis has been designated to serve on the Board by Alfa CTC Holdings Limited ("Alfa"), an affiliate of Alfa Bank, pursuant to the terms of a stockholders' agreement among the principal stockholders of the Company.
For a period of twenty business days following the closing of Teledyne Instruments' investment in ODI, the stockholders of ODI that execute a stockholders' agreement prior to the closing will have the option to sell their shares to Teledyne Instruments at a price per share equal to Teledyne Instruments' initial investment in ODI.