CORPORATE FORMALITIES AND SHAREHOLDER AGREEMENTS
Corporate Formalities
Businesses that fail to comply with various state and federal corporate formalities risk losing their “corporate shield” and can expose officers and directors to personal liability.
We assist businesses in adhering to corporate formalities and preserving the corporate shield by:
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Ensuring annual and special shareholders’ meetings are properly scheduled and conducted
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Requiring accurate and timely records of corporate activities and meetings
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Assisting officers and directors in complying with their fiduciary duties to the company and shareholders
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Making sure businesses comply with its Bylaws, Articles of Incorporation, and applicable regulatory requirements as to licensing, insurance, contracting, reporting and disclosures
Shareholder Agreements
Shareholder agreements are one of the pivotal business agreements that should be prepared to govern various aspects of business entities. A shareholder agreement dictates terms such as the investment and ownership interest of each shareholder, the involvement of individual shareholders in managing the business, additional capital contributions and the failure to provide same, voting rights, conflict resolution and the division of profits and losses. Shareholder or Member Agreements also address the valuation of equity shares, the addition of new shareholders or members, and the division of shares during major life events such as death, divorce, and dissolution.
Shareholder Agreements should strive to address every potential issue that can occur in the future. The ability to predict and provide for these issues can save significant time and money otherwise spent on litigation costs and attorney fees.
If you have any questions regarding an agreement or contract, do not hesitate to contact our office. We have years of experience in assisting clients with their business and commercial needs, both on an as-needed hourly basis as well as with fixed monthly and yearly retainers with unlimited communications.