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LSDefine

Simple English definitions for legal terms

shareholders' agreement

Read a random definition: custodia terrae et haeredis

A quick definition of shareholders' agreement:

A shareholders' agreement is a contract that outlines the rules for how a company should be run and the rights and responsibilities of the people who own shares in the company. It's like a set of instructions for how everyone should work together. The agreement covers things like how decisions are made, how shares can be bought or sold, and how the board of directors is chosen. It's especially important for small companies where the shareholders are closely involved in running the business.

A more thorough explanation:

A shareholders’ agreement is a legal contract that outlines the relationship between the shareholders and the corporation. This agreement sets out the basic rights and responsibilities of the shareholders and the corporation. It is particularly important for small, closely-held corporations where the shareholders are actively involved in the management of the company.

The shareholders’ agreement typically covers a range of issues, including:

  • Voting rights during shareholders’ meetings
  • Buying or selling company shares
  • The corporation's articles of incorporation and bylaws
  • The selection procedure for the board members of the corporation

For example, let's say that a group of friends decide to start a small business together. They form a corporation and each invests an equal amount of money. They want to make sure that they all have an equal say in how the business is run, so they create a shareholders’ agreement that gives each shareholder one vote during shareholders’ meetings. They also agree that if one shareholder wants to sell their shares, the other shareholders have the right of first refusal to buy them.

Another example might be a family-owned business where the shareholders are all members of the same family. They want to make sure that the business stays in the family, so they create a shareholders’ agreement that requires any shares that are sold to be offered first to other family members before they can be sold to outsiders.

Overall, a shareholders’ agreement is an important tool for ensuring that the shareholders and the corporation are on the same page and that everyone understands their rights and responsibilities.

shareholder's derivative action | shareholders' meeting

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WorthlessAttractiveZombie
9:35
it sent a million times lol
WHAT HAPPENED
yeah i thought you were tweaking for a second
i'm so sorry everyone what the actual fuck this website hates me
WorthlessAttractiveZombie
9:35
Jack's just tweaking on LSD no biggie
to be fair this accurately represents my mental state
election day psychosis coming in hot (fordham)
usc pls pull through .....
i literally just need one A so i can relax before my ED decision
WorthlessAttractiveZombie
9:38
oh that's right USC might release
soapy
9:43
USC still has not looked at my app
WorthlessAttractiveZombie
9:43
when did you submit soapy?
soapy
9:44
10/16
WorthlessAttractiveZombie
9:44
to be fair it took them almost 2 months for me to go under review
soapy
9:44
Feelin a bit stressed, as I've got no date change for Michigan either despite applying 10/7
WorthlessAttractiveZombie
9:45
I have not had a date change either for Mich but I've seen people get in without one so who knows
I applied 9/25 to like 6 schools and some (Houston) have no date change yet so dw
soapy
9:46
But do people get in without addresses going long?
WorthlessAttractiveZombie
9:46
it's tough to tell because a lot of people type out their addresses long to begin with
soapy
9:46
Ah. I didn't. Looking back, my Mich supplement kind of sucks, so there's that
Mich overrated (Dean Z please let me in even tho i didnt apply and I am below both 25ths)
ClassyPleasantHeron
10:01
The "date changes" at Michigan really don't mean anything. We had to do them in undergrad admissions whenever a Georgia applicant picked the country instead of the state, because we'd have to remove the TOEFL requirement and reassign the application from the international application readers.
soapy
10:06
Classy, does that mean they may look at your application, and that look doesn't necessarily trigger any date change?
1a2b3c4d26z
10:06
Man
1a2b3c4d26z
10:07
Walkin to the bus
1a2b3c4d26z
10:07
What a good day to get into law school
ClassyPleasantHeron
10:11
@soapy: I don't know for sure about the law school. For undergrad, once the application is complete, it's assigned to a reader the following Monday. If we had to make any changes, it's because a reader saw something that needed to be changed and the application needed to be re-read after that change.
soapy
10:12
Ahh, got it. Thank you for the insight!
ClassyPleasantHeron
10:14
You're welcome. FWIW, I have no idea what's up with the address changes. We didn't have to do any of that, except for the Georgia state vs country kinds of things.
soapy
10:15
I've heard it theorized that some schools will change the address from "St." --> "Street" as they prepare to send out admissions packets. That's the rumor, anyways.
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