10 TIPS FOR DRAFTING BETTER SHAREHOLDER AND OPERATING AGREEMENTS
By Yoel Molina, Esq.
Email: fd@molawoffice.com | Office: 305-548-5020 2655
S. Lejuene Road, Suite 500 Coral Gables, FL 33134
As a business owner or shareholder of a corporation, having a well-drafted shareholder agreement or operating agreement is essential 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 involved party.
- Address the issue of ownership and the percentage of shares or membership interest each party holds.
- Include provisions on how new shareholders or members can be added or removed from the agreement.
- Establish guidelines for decision-making, including the voting process and the percentage of votes required to make decisions.
- Address the issue of share transfer and include provisions on how and when shares can be sold or transferred.
- Include provisions for the protection of confidential information and intellectual property of the company.
- Set a clear plan for profit and loss distribution among shareholders or members.
- Include provisions for company dissolution or agreement termination.
- Address the issue of dispute resolution and establish a process for resolving conflicts between parties.
- Seek guidance from a corporate attorney to ensure 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 reach out to my office to schedule a consultation and discuss how we can assist you in drafting a better shareholder agreement or operating agreement.
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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