2. Shareholder Conflicts It is not uncommon for shareholders to object. Even in companies that are the only two shareholders, there may be litigation (in fact, it may be even more common in this scenario!). A shareholders` pact can define the method of resolving a dispute that leads to a faster and more efficient settlement and which often prevents the dispute from the outset. Although pre-marriage and post-marriage agreements are not automatically binding in this country, there is a good chance that they will be confirmed by the Court of Justice if they are duly concluded. When developing an effective shareholder contract, it is important to speak to an experienced business lawyer. Since shareholder agreements can help preserve activities and livelihoods, it is essential that these agreements are treated with the care and respect they deserve. A business lawyer can help business owners design an agreement that ensures that their businesses and interests are better protected from unforeseen circumstances. 2. Don`t make your spouse a shareholder of your company without careful consideration Perhaps the most important provision in every U.S. is how to solve an irreconcilable problem between two shareholders. If two partners can no longer work together, but neither is ready to go, what happens? To protect itself when a spouse wishes to equalize shares under the Family Act, a company may have a shareholder contract that contains certain provisions.
This may include the requirement for shareholder spouses to waive all effective stock claims and the right to information that respects the company, as well as independent legal advice. However, the shareholders` pact should more often provide that a shareholder`s shares are sold, repaid or transferred to another shareholder in the event of a claim or proceeding brought by that shareholder under the Family Act. This ensures that the spouse receives the value of the shares in the form of monetary policy, but not the shares themselves.