Shareholders Agreement and Team Building
Shareholders Agreement and Team Building When starting a business if there are going to be multiple shareholders, it is important to agree beforehand on certain areas of the business before setting it up. This will allow the team to work towards one common goals and will avoid headaches and pains in the future that might lead to the failure of the business. The main elements of a shareholders agreement are: 1. The business reason; what is the reason to build the business. 2. What is agreed between the shareholders. 3. The legal side or jargon, this needs to be checked with a lawyer. The shareholder agreement is a private document intended to establish matters that could be conflicting in order to prevent the conflict from ever happening. In other words, the purpose is to go through all the possible future difficulties beforehand. If problems arise the agreement would be binding and would resolve the conflict. The target is to make it both flexible and fair but also strict (s...