If you`re starting a new business with investors, or bringing on new partners to an existing business, chances are you`ll need to put together a shares agreement form.
A shares agreement form is a legal document that outlines the terms and conditions of buying, selling, and transferring shares of a company. This document is an essential part of any business partnership or investment agreement, as it helps to protect the interests of all parties involved.
Here are some of the key elements that you should include in your shares agreement form:
1. Share Structure: This section outlines the number of shares that the company has issued, the rights and privileges attached to each class of shares, and any restrictions on transferring shares.
2. Shareholder Rights: This section details the rights and privileges that each shareholder has, such as voting rights, dividend rights, or the right to participate in future equity offerings.
3. Shareholder Obligations: This section outlines the responsibilities that each shareholder has, such as contributing capital, maintaining confidentiality, or complying with regulatory requirements.
4. Transfers of Shares: This section covers the process for transferring shares, including any restrictions or limitations on transfers.
5. Valuation: This section outlines how the company`s shares will be valued, and how that value will be determined in the event of a sale or transfer.
6. Dispute Resolution: This section outlines how disputes between shareholders will be resolved, such as through mediation or arbitration.
Overall, a shares agreement form is a critical document that can help ensure the long-term success of a business partnership or investment agreement. By laying out the rights, obligations, and responsibilities of each shareholder, this document can help prevent misunderstandings, disputes, and other issues that could threaten the company`s stability and growth. If you`re starting a new business or bringing on new partners, be sure to work with an experienced attorney to create a shares agreement form that meets your needs and protects your interests.