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Shareholder agreements: what they usually cover
General information only, not legal advice. Reading this article does not create an attorney-client relationship.
A shareholder agreement is a contract among the owners of a corporation about how they make decisions, transfer shares and handle disagreements. Florida law supplies default rules; an agreement lets the owners set rules that fit their business. For an LLC, similar terms usually appear in the operating agreement.
They commonly cover:
- Who manages the company, and which decisions need wider approval
- Whether shares may be sold to outsiders, and on what terms
- What happens if an owner dies, leaves or becomes unable to continue
- Whether owners must contribute further capital
- How a deadlock is resolved
- Confidentiality and restrictive covenants, which Florida regulates specifically
- When profits are distributed
Where the owners live in different countries, the agreement should also address governing law, remote meetings, notices and which language version controls.
To discuss a specific company, you may schedule a consultation. Scheduling a consultation does not create an attorney-client relationship.
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Business LawAttorney advertisement. This article is published by Oztek Law Firm, P.A., Fort Lauderdale, Florida, for general informational purposes only. It is not legal advice and does not address any particular person’s situation. Reading this article, or contacting the firm about it, does not create an attorney-client relationship. An attorney-client relationship with the firm begins only when the client and the firm both sign a written engagement agreement. Laws, regulations and agency practices change, sometimes quickly; this article reflects the law as of the “last reviewed” date shown above and may not reflect later developments. The outcome of any matter depends on its own facts, and no result can be predicted or guaranteed. Please do not send confidential or time-sensitive information through this website. Oztek Law Firm, P.A. advises on Florida law and United States federal law; it does not advise on Turkish law. Kirgiz Can Oztek, Esq., is responsible for the content of this article.