MULTI SHAREHOLDER CORPORATION - INCLUDES SHAREHOLDERS AGREEMENT

When a non-publicly traded corporation is formed, we strongly advise to have an agreement among the Shareholders as to how the corporation will be organized and operate. The Agreement issued is in addition to the By-laws of the corporation and should contain clauses concerning the Buying and selling of the company stock. It is a good idea that corporate governing procedures be establish and memorialized in a written Shareholders Agreement at the time of incorporating, because after the formation of the corporation matters may not be so easily agreed upon. Our Shareholders Agreement spells out the rights and obligations of the parties in the event disagreements come up. Even family corporations should consider a SHAREHOLDERS AGREEMENT, since it could settle some issues without the expense of litigation. Issues such as the rights of the shareholders to vote, rights of the directors, salaries, nominating officers and employees, buy-sell agreement concerning stock transfers of shares and endorsement rights.