Shareholders Operating Agreement (Short)
A Shareholder Agreement is a contract between shareholders of a corporation. It specifies shareholder rights and responsibilities and includes terms on internal management, share valuation, profit distribution, dispute resolution methods, and more within a corporation.
This will generally be utilised once business operations have commenced. If you are still developing concepts and offerings, and just need a method to protect your contribution and ideas and to help manage the relationship, we would recommend utilising the Founders Agreement as this will be more appropriate for your needs. This document will be here for when you are ready.
Founders Agreement: Pre-incorporation Startup Agreement (Extensive)
A Founders’ Agreement is a contract that a company’s founders enter into that governs their business relationships. The Agreement lays out the rights, responsibilities, liabilities, and obligations of each founder. Generally speaking, it regulates matters that may not be covered by the company’s operating agreement.
Ultimately, Founders’ Agreements are designed to protect each founder’s interests and memorialize that all founders are in agreement about the venture’s basic structure and how the founders will work together to move their business forward. Forging an agreement between all founders helps mitigate the risk of a lawsuit over who owns the business. There is a wide range of provisions that could be addressed in a Founders’ Agreement.
The template below includes provisions about:
*Transfer of ownership;
*Decision-making and dispute resolution;
*Representations and warranties; and
*Choice of legal authority... and more!