Shareholder Agreements

Unfortunately Shareholder Agreements are often one of  those documents that is placed in the back of the filing cabinet & forgotten about for years. Since it has no relevance to the day to day operations of the business, or even at annual meetings, it can easily be forgotten . The Agreement really doesn’t mean anything until misunderstandings arise or until a share  transaction is about to occur. Then the Agreement becomes highly relevant!

For most business people a lot has changed over the years. The value of the business has increased, they are subject to different tax implications and perhaps even personal objectives and expectations have changed. An outdated Agreement can result in a significant erosion of wealth when one of the triggering events occurs. Good planning dictates that commitments made some years ago should be reviewed in light of current  realities.

Click here if you are uncertain about the relevancy of your Shareholders’ Agreement.