Shareholder Agreement: Guiding Force Behind Every Organisation
It would not be a misnomer to state that shareholder agreement is life and soul of any business partnership. Since business partners are also the shareholders of the outfit, it is very essential to have a written document about the rules and regulation that would govern the partnership, a set of agreement which every partner will have to follow. It also determines what stake every partner has in the company and how the profit and loss stand to be distributed. It, therefore, becomes very clear that shareholder agreement is an immensely essential element for smooth functioning of any organisation.
Whether an organisation has two partners or many, the utility of shareholder agreement simply cannot be minimised. In fact it would not be wrong to state that more partners are there in an organisation more the need for an agreement is felt. Shareholder agreement includes informations like the names of the shareholders, board members and other office bearers. The agreement also must clearly state that what happens in case one or more partners decide to end their association with the company as also in case when disputes arise. What is most heartening about share holder agreement is the fact that preparing a shareholder agreement costs very little.
All these points clearly indicate towards one thing, that shareholder agreement is absolutely important and a guiding force behind any organisation. It is imperative for partners to have an agreement which actually decides as to how the company would be run. The value of shareholder agreement, therefore, can easily be understood.
Lastly it must be added that such an important document like shareholder agreement should be protected at all cost for it contains some of the most sensitive information about the enterprise as well as the people who run it.
Related Tags: agreement, shareholder, uk company formation, limited company, shareholders agreement, limited by shares, company limited by shares in the uk
The Author is an experienced writer presently writing on topic like Company Formation UK for taking business services to establish a company.
Recent articles in this category:
- How to Hire a Personal Injury Attorney Toronto
There is no question that suffering from a personal injury is an incredibly difficult thing to have - Finding the Best Personal Injury Lawyer
Should you be the victim of an accident that just simply was not your fault and you have received an - DUI Perpetrators Must Seek Expert Help
It is obvious, as we progress further into the future, that behavior that puts others at risk is not - To Find the Best New York Attorney Buffalo is Still the Best Choice
If you need an attorney in New York, you would surely have a lot of options. New York has 10 cities - If You Need a Great Wisconsin Attorney Madison is the Way to Go
Are you in need of a great Wisconsin attorney? If you are from Wisconsin and need a great attorney M - What Is The Importance Of An LLP Agreement
An LLP agreement is an important contract, since without such a document the Limited Liability Partn - Personal Injury Lawyers - Get Help at Your Doorstep When Injured
As soon as you are involved in an accident, it is usually quite common for you to be injured maybe i - Personal Injury Lawyers - Knowing If You Are Entitled For a Claim
No doubts accidents do take place; however that does not mean that you should take up the liabilitie - Personal Injury Lawyers - Claiming Compensation For Your Injuries Some Tips
When you are injured, the next thing is you should know what legal rights you have; this will provid - Personal Injury Lawyers Help Victims of Car Accident Claim Financial Damages
People living in Toronto go to work through different modes of transports like trains, buses and car
Most viewed articles in this category:
- Mesothelioma Lawyer - Asbestos Attorney - Mesothelioma Lawsuits & Lung Cancer Information
Mesothelioma is one of the most tragic diseases ever to strike the working man. Due to decades of m - Michigan Personal Injury Lawyer Courts
The Michigan Courts were created by the Constitution of 1963, Article VI, and Section 1, under which - What is Entrapment?
Question: What is entrapment?Criminal Defense Lawyer: Entrapment is a defense raised by a defendan - Top 10 Tips On How To Win Your Road Traffic Accident Case
If you happen to be pursuing this thing right now then here are the top ten tips on how to win your - Agency Law
Agency Law The origins of the doctrine of necessitous intervention by someone who is in a legal rel - Procedure Of DWI In U.S.A.
ALR (Administrative License Revocation) A Program to suspend the driving license Of Drivers Which a - Mesothelioma Lawsuits Surging in United States
Mesothelioma is a cancerous disease where malignant cells develop in the lining of the chest or the - Forensic DNA Testing
Forensics is defined as the study of evidence found at a crime scene and used in a court of law. For - Arizona Drunk Driving Law, Az Drunk Driving Law & Arizona Drunk Driving Charges
Arizona drunk driving is one of the most common and deadly mistakes in Arizona while driving. Defens - Worried About the Fair Debt Collection Practices Act?
Do you work for a financial institution that collects debts? If so, do you know whether the Fair De