Home Add to Favorite Contact Submit  
             14 May, 2021

Category:  Articles » Finances » Investing


Shareholder Agreement - Guiding Force Behind Every Organisation

         Views: 1856
2007-11-11 18:31:22     
Article by Ryan Graff

It would not be a misnomer to state that shareholder agreement is life and soul of any business partnership. Since business partners are also the shareholders of the outfit, it is very essential to have a written document about the rules and regulation that would govern the partnership, a set of agreements which every partner will have to follow. It also determines what stake every partner has in the company and how the profit and loss stand to be distributed. It, therefore, becomes very clear that shareholder agreement is an immensely essential element for smooth functioning of any organisation.

Whether an organisation has two partners or many, the utility of shareholder agreement simply cannot be minimised. In fact it would not be wrong to state that more partners are there in an organisation more the need for an agreement is felt. Shareholder agreement includes informations like the names of the shareholders, board members and other office bearers. The agreement also must clearly state that what happens in case one or more partners decide to end their association with the company as also in case when disputes arise. What is most heartening about share holder agreement is the fact that preparing a shareholder agreement costs very little.

All these points clearly indicate towards one thing, that shareholder agreement is absolutely important and a guiding force behind any organisation. It is imperative for partners to have an agreement which actually decides as to how the company would be run. The value of shareholder agreement, therefore, can easily be understood.

Lastly it must be added that such an important document like shareholder agreement should be protected at all cost for it contains some of the most sensitive information about the enterprise as well as the people who run it.

About the Author: The Author is an experienced writer presently writing on topic like Company Formation UK for taking business services to establish a company

Specialized in: Company Limited By Shares - Company Formation - Company Formation Uk - Online Company Formation - Establish A Company - Form A Company - Company Formation Agent - Company Services - United Kingdom Incorporate Uk Ltd - Incorporate Uk Ltd - Registered Office
URL: http://www.companieshouseonline.com
Print article      Bookmark this page
Related Articles 
How to Make Money by Using a Guaranteed Investment Certificate Canada Company (Popularity: ): If you are trying to make money by making smart investments, you might have figured out by now that it is not nearly as easy as it appears. Investing your money wisely can seem like a very profitable and wise thing to do, but it's an accomplishment that can take decades to do successfully. Everyone wants to invest their money and make a profit off of their wealth, but it ...
How to Earn Income from Stocks You Presently Own (Popularity: ): Investors who don’t want to take a lot of risks with their portfolio should consider opting for covered calls. This is an income-producing strategy where the investor sells call options against the stocks he or she owns. Usually, investors sell a contract for every 100 shares of stock. In turn, the investor collects a premium that comes with an obligation. When the buyer exercises the call option, the investor may ...
Positives and Negatives of Stock cash trading (Popularity: ): Before knowing about anything it is important to have knowledge about the basics of that topic and in stock market its matters a lot. So before illumination of important strategy about stock cash trading we will discuss that what is stock cash trading?Cash trading is a term used to describe a speculator that only trades with a cash on hand and does not use any margin. Stock Cash trading is ...
Retirement Planning with Systematic Investment Plan (SIP) (Popularity: ): The year was 1985. A joint family of 10 people (two brothers, their wives and kids along with their parents) was living happily with limited means. It was a period of closed economy, limited access to global products and aspirations were limited. It was a period of joint family with lower expenses and higher savings.In 2011 we are talking about nuclear family, children staying away from parents due to higher ...
Share Market Tips Provider (Popularity: ): Share market has now gain a huge status nowadays and growing on day by day. It was started some around 12th century in France. The reason for launching of this market was increased debt in the agricultural community. This market was brought into existence to manage all the debts. This was done with the help of banks and the people who are known as the brokers. And now the development ...

Related Business 
Minority Shareholder Oppression (Popularity: ): Get updated with all the happenings taking place in relation to Minority shareholder oppression including info about New York appellate court, rights of minority & majority shareholder & more. As lead trial counsel for the minority shareholder in ARGO Data, we have been asked whether the Dallas Court of Appeals’ decision signals that courts will now apply a more stringent standard to shareholder oppression claims.
Air Conditioning Services & Solutions (Popularity: ): Hill York’s Maintenance Agreement Program provides three solutions that are tailored specifically to the needs of our clients in different industries: Preventative Maintenance Agreement, Labor Maintenance Agreement and Certified Maintenance Agreement.
Compromise Agreement Solicitors (Popularity: ): A Compromise Agreement is a common method of resolving an employment dispute without the need for legal proceedings. Our Compromise Agreement Solicitors offer the independent legal advice that is compulsory under the terms of a compromise agreement. One of our team will also put their name to a Compromise Agreement contract, a further requirement of a deal, proving both yourself and your employer have had separate legal advice in agreeing ...
ATEX approval organisation (Popularity: ): Notified Body in United Kingdom under the worldwide hazardous area equipment certification agreement.
JesusPets (Popularity: ): This organisation offers a service to care for pets left behind after Christians are raptured into heaven. Contact details, customer agreement and message board.
Arts United of Greater Fort Wayne (Popularity: ): A guiding force behind the arts in northeast Indiana.
Separation Agreement (Popularity: ): Separation agreements - Net Lawman IE provides comprehensive separation agreement for legal separation. DIY separation agreements in plain English. There is no requirement to formally record the agreement you and your former partner reach.
WorldTradeLaw.net (Popularity: ): A searchable database of reports relating to the World Trade Organisation, and the General Agreement on Tariffs and Trade.
Student Scout And Guide Organisation (Popularity: ): Includes SSAGO contacts, program information, photos, and events for scouting and guiding at institutions of higher education.
Shotgun Fund (The) (Popularity: ): The Shotgun Fund provides equity capital to buy the shares of a departing shareholder in a private company shareholder dispute.