Tampa Shareholder and Operating Agreement Attorney
Shareholder agreements are one of the most important foundations when building a strong business. Effective shareholder agreements can ensure that your business runs fluidly and to prevent problems from arising. While drafting a shareholder agreement, there are many issues that can arise including operations, financing, buy-ins and buy-outs along with other relevant matters. When a shareholder agreement is executed properly, it can minimize the potential for shareholder lawsuits. Our Tampa shareholder and operating agreement attorney can help you draft your agreement so your business has the protection it needs.
What is a Shareholder and Operating Agreement?
When you establish a corporation, one of the most important tools you need is the shareholder operating agreement. A shareholder agreement will help you run the business while also ensuring the rights of all parties are protected. Shareholder operating agreements have two main functions. The first to provide basic guidelines regarding how the business will handle its most important business affairs. The second purpose is to avoid unfavorable litigation by reducing the amount of shareholder disputes that may arise.
The shareholders of a corporation typically have their own opinions and preferences regarding certain business affairs such as raising capital, internal operations, and more. These agreements attempt to align these preferences so the business can develop and move forward. However, not all shareholder agreements are created equally. Some agreements do not take certain matters into consideration while others fail to reflect the shareholders’ interest. Due to this, shareholders will sometimes initiate litigation when an insufficient contract causes them to sustain losses.
Shareholder agreements do not need to be complicated. However, they must include certain details to avoid lawsuits. Then again, shareholder operating agreements should also not be extremely strict or onerous. If an agreement is too stringent, it can become unappealing to potential investors.
Terms to Include in a Shareholder Agreement
A shareholder agreement should include many important terms. These include:
- The duties and rights of officers, directors, minority shareholders, and majority shareholders
- Corporate procedures, resolutions, voting, and procedural issues
- Dispute resolution such as mediation, arbitration, and negotiation
- Proactive procedures that make sure officers and directors are acting in good faith and in the company’s best interests
- Resolution methods for illegal or unfair actions, breaches of fiduciary duty, fraud, unfair competition, trade secrets, and more
- Handling of shareholder derivative lawsuits
- Inquiries into protecting the rights of shareholders
It is important to work closely with an attorney while drafting your shareholder operating agreement. An attorney will know what to include in your agreement so it provides protection for the business while also making sure the rights of the shareholders are clearly defined and upheld.
Contact Our Shareholder and Operating Agreement Attorney in Tampa Today
BBDG Law is committed to make sure the rights of corporations, business owners, partners, and shareholders are all protected. Our Tampa shareholder and operating agreement attorney can provide the legal advice you need to help you avoid litigation and navigate lawsuits, if necessary. Call us today at (813) 221-3759 or fill out our online form to schedule a consultation and to learn more.