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LSDefine

Simple English definitions for legal terms

shareholders' agreement

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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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babycat
23:11
would you call hannah arendt a gentle femdom?
23:12
U did induce quite a bit of interesting descriptors
from what I've read of her no, but she def is pretty badass so also maybe
JumpySubsequentDolphin
23:17
tex what’s your other half
Thai!
23:17
very epic
JumpySubsequentDolphin
23:18
ah very cool
it called me sexy idc it also called me old but i do not even care
JumpySubsequentDolphin
23:19
it said I have a mouse face.
babycat
23:25
i think probably all the nice things it said about you guys are true and the mean ones aren’t true
JumpySubsequentDolphin
23:27
I bet all the mean things it said about you aren’t true and all the nice things are understatements <3
babycat
23:27
when they said gentle femdom they were understating it
JumpySubsequentDolphin
23:28
yeah no they for sure should’ve said aggressive dark femdom
JumpySubsequentDolphin
23:30
@babycat: a straight man just told me he’s obsessed w clairo and beabadoobee’s music. curious to hear your thoughts
babycat
23:31
i would not let that slide. too many men out here want to be soft boys
babycat
23:31
good times create weak men, weak men create hard times, and so on
JumpySubsequentDolphin
23:32
i feel like I’ve never been more certain that a man’s a whore in my life
JumpySubsequentDolphin
23:33
what do you MEAN you’re obsessed with clairo and beabadoobee. who are you trying to impress
babycat
23:37
men will say ugh i wish i had a girl to go to the clairo concert with me. whole time they’re just whores
23:38
my buddy went to under grad with her
ok what's wrong with liking beabadoobee though 😭
23:39
^
23:57
straight man who likes beabadoobee has a 60% chance of being full of red flags and that percentage is too high to risk it
23:57
i unfortunately have the falling for straight man by accident because i thought he was bi because he likes clairo and beabadoobee disorder
JumpySubsequentDolphin
23:58
Eggan thank you for understanding. ily.
@Eggan: oh goodness
ExplodingEffoc
0:04
Glue song Clairo and Beabadoobee best song ever
I think a night to remember is better but yea they're both very good
Dkk
0:08
I would call Arendt nuts but correct sometimes.
Dkk
0:09
No idea who these artists are
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