Original text

Does your business have more than one owner?

If so, then a comprehensive shareholders agreement (or operating agreement for LLCs) can be essential.

For companies of all sizes, it is one of the most important, yet most overlooked agreements. At minimum, a properly drafted shareholders agreement will help ensure that the owners’ vision, goals, and expectations are understood and aligned. And in the event of a shareholder dispute, it may literally save the life of your company (as shareholder disputes are one of the leading causes of litigation).

Topics for this seminar will include:

• Why every company with more than one owner should consider having a shareholders or operating agreement
• Management issues
• Understanding the decisions every company will often face
• Structuring the management hierarchy
• Selecting (and replacing) decision makers at each level
• Ensuring continuity of management
• Economic issues
• Determining what constitutes “profits”
• Deciding how and when the profits get distributed
• Capital calls
• Issuing, transferring and redeeming shares/units
• Anti-dilution
• Planning for an eventual liquidity event
• Tax considerations
• Avoiding phantom income in S corporations and LLCs
• Preserving (and revoking) S corporation status
• Information and audit rights
• Dispute resolution
• Why litigation or arbitration may not work
• Buy/sell provisions
• Alternative dispute resolution mechanisms
• Ways to resolve disputes