shareholders' agreement

(redirected from Stockholders' agreement)

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 ?
DNeX has signed a conditional stock sale and purchase deal and stockholders' agreement with Genaxis' owner Nuraslina Zainal Abidin for the proposed acquisition.
The executive vice president had an employment agreement that retained his "at-will" employment status but allowed for severance pay upon his termination from the company unless he was terminated for cause as defined in the stockholders' agreement.
At the meeting, the directors created a special committee--a committee of which the CEO was not a member--which recommended that the full board terminate the CEO and amend the stockholders' agreement to eliminate his ability to replace directors.
5m (which is currently being held in escrow), buyer and seller will enter into a new stockholders' agreement governing the rights and obligations of the stockholders' of CMC and a subsidiary of CMC and an affiliate of seller will enter into a management services agreement whereby seller's affiliate will provide certain services to CMC and its subsidiaries in exchange for service fees.
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).
pursuant to the Stockholders' Agreement between the Company and TFG Radiant Investment Group Ltd.
According to MTG, the CTC Media stockholders' agreement enables MTG to designate three of the nine members of the CTC Media board and the co-chairman.
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 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.
Under its commitment to purchase additional shares of common stock, Tallwood has entered into a stockholders' agreement which provides that its common stock in excess of 37.