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 ?
Evli Bank Oyj (HEL: EVLI) reported on Friday that in accordance with the shareholder agreement, it has acquired 8,000 of its own unlisted A shares based on the agreement signed on 6 September 2017.
FCA also undertakes, for the duration of the shareholder agreement, not to transfer its shares in GELE that are subject to the terms of the agreement.
In fact, this is the very reason that a shareholder agreement is so important.
Vimpelcom's key Russian shareholder Altimo said in April it expected to scrap a 2009 shareholder agreement with Norway's Telenor to allow Sawiris roughly equal rights in Vimpelcom.
The shareholder agreement also states that the shareholders cannot raise their stake to over 33.
Norwegian group DnB NOR ASA (OSL: DNBNOR) has said that its board of directors has decided to start the evaluation period under the shareholder agreement regarding its loss-bringing 51/49 joint venture with German wholesale bank NordLB, Bank DnB NORD A/S.
Therefore, a shareholder agreement may be a key instrument to protect minority shareholders from the majority (69).
In a similar situation, (38) a trust tried to transfer its shares to another trust, but the transfer was deemed null and void under a shareholder agreement.
After the signing of a shareholder agreement between the transport minister of Gabon and Royal Air Maroc President and GM Driss Benhima, the new carrier will begin operations at the end of the first quarter with a fleet of two aircraft, probably 737-700s.
Biehl's argument was based on (1) the presence of a shareholder agreement which required the losing party to pay the attorney's fees of the prevailing party in any suit due to a breach of the agreement and (2) the fact the lawsuit arose out of the taxpayer's former employment.
But these valuations discount the price heavily because 1) there is not a large market for the small holdings of individual shareholders without a controlling interest, 2) the regulations surrounding ownership qualifications of Sub S companies, and 3) due to restrictions imposed by shareholder agreements, since each Sub S company has its own shareholder agreement.
Nearly all those problems can be averted with the help of competent counsel and a simple, uncomplicated document known as a shareholder agreement, commonly known as a buy-sell agreement.