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 ?
Bulgaria's Kozloduy NPP has published on its official website the shareholders' agreement signed with US Westinghouse Electric.
WHEN individuals get together to set up a new company, they very rarely bother to have a shareholders' agreement drafted.
With all the demands on their attention, busy entrepreneurs can easily overlook important long-term planning, such as creating a shareholders' agreement.
Ferrum Crescent said the structure of the transaction will be finalised with the signing of the relevant shareholders' agreement in January 2014 once the first payment of USD1 million will be made.
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.
Generally, each jurisdiction has a corporate law, which sets out certain standard procedures and ways in which decisions are taken, such as minority protection right, in the absence of a shareholders' agreement.
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.
NEW YORK, March 30 /PRNewswire-FirstCall/ -- Asia Pacific Wire & Cable Corporation Limited (BULLETIN BOARD: AWRCF) (the "Company") announced today that it has entered into an Amended and Restated Shareholders' Agreement, effective as of today, with its majority shareholder, Pacific Electric Wire & Cable Company Limited, and another investor of the Company, SOF Investments, L.
Despite several rounds of extensive negotiations, the final draft of the shareholders' agreement is still "scheduled for discussion" from December 18.
2703-1(a)(3) provides that such rights or restrictions may be found in partnership agreements, articles of incorporation, bylaws, shareholders' agreement or any other agreement, or may be implicit in the entity's capital structure.
Distribution of funds to MIC from IMTT is governed by the Shareholders' Agreement between MIC and the co-investor that owns the remaining 50% stake.
US-based company Westinghouse and the outgoing Bulgarian cabinet have sealed a shareholders' agreement on the expansion of nuclear capacities at the Kozloduy NPP.