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24 March 2023

10 Tips for Drafting Better Shareholder and Operating Agreements

By Yoel Molina, Esq.

 

E-mail: fd@molawoffice.com and office: 305-548-5020 2655 S.

Lejuene Road, Suite 500 Coral Gables, Fl. 33134

 

As a business owner or corporation shareholder, it is essential to have a well-drafted shareholder agreement or operating agreement in place to protect your interests and ensure the success of the company. Here are 10 tips for drafting better shareholder and operating agreements:

 

  • Clearly define the purpose of the agreement and the roles and responsibilities of each party involved.

  • Address the issue of ownership and the percentage of shares or membership interest held by each party.

  • Include provisions for how new shareholders or members can be added or removed from the agreement.

  • Establish guidelines for decision-making, including the process for voting and the percentage of votes required to make decisions.

  • Address the issue of stock transfer and include provisions for how and when shares can be sold or transferred.

  • Include provisions for the protection of the company's confidential information and intellectual property.

  • Establish a clear plan for the distribution of profits and losses among shareholders or members.

  • Include provisions for the dissolution of the company or the termination of the agreement.

  • Address the issue of dispute resolution and establish a process for resolving conflicts between parties.

  • Seek the guidance of a corporate attorney to ensure that the agreement is legally sound and enforceable.

 

In summary, a well-drafted shareholder agreement or operating agreement can provide a framework for the successful operation of a corporation or LLC. By following these 10 tips, you can ensure that your agreement is clear, comprehensive, and protects the interests of all parties involved. As a corporate attorney with a 5-star rating on Google and an excellent rating on AVVO, I invite you to contact my office to schedule a consultation and discuss how we can help you draft a better shareholder or operating agreement.

 

www.yoelmolina.com 

Please Click Here To Set an Appointment To Discuss This Article Further

Please note that this is not legal advice and is considered advertisement. 

 

Law Office of Yoel Molina, P.A.

 

Law Office of Yoel Molina, P.A.

 

Phone: 305-548-5020, option 1

Email: fd@molawoffice.com

WhatsApp: 305-204-9635

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