If you are planning to buy shares from a company, you are required to sign the shareholder agreement. Every shareholder must record this transaction of shares purchased.
If you want to learn this agreement, you can download the shareholder agreement template on this page. There are tons of samples and examples that you can learn from how mostly this agreement is written. If you are a person who is planning to sell the company’s share, you can download this template here. We also have the loan to shareholder agreement which you might need too.
The benefits of using our templates are the premium features. You can edit and also customise it. The model is available in all formats and ready to print.
The stockholder agreement and the shareholder agreement is the same, which means the contract between the corporation and its shareholders. This agreement contains several essential elements, such as:
- The responsibilities of the shareholders and shareholders
- The valuation and ownership of the shares
- Management of assets, business, capital, finances and shares
- The rules and restrictions. It is related to the new shares issues and its transfer.
- The actions to do for the incapacitation and death of the stockholder
- Conflict resolution which also includes rules, the non-compete clauses and other things that protect both parties from disputes in the futures.
- Disputes resolutions
A shareholder will have a portion of equity. If a company performs well in the business, then the shareholder will get profits. Vice versa, if the company performs poorly, then the shareholder should be ready to lose money.
Even though a person only buys a small amount of shareholder, then this shareholder agreement should be drafted. This contract should be made before the company starts the business activities so everyone will get the same portion of profit and also it will be easy to calculate.
Is The Stockholder Agreement and Partnership Agreement Different?
Note that both terms are two different things so the draft will be written differently too. A partnership contract is created for the mutual purpose among parties. Meanwhile, the stockholder agreement is between two parties only, which in this case is between the stockholder and the company.
When a person has bought shares and signed the contract, there are some rights they will get, including:
- The first refusal rights – They are allowed to sell the shares at the fair value to other shareholders. If none of the shareholders can buy it, then they can offer it to another party.
- Shotgun provision – It is also called a buy-sell agreement. If a shareholder has discord, he/she can use this.
- Piggyback provision – This is also known as the co-sale provision. This is designed for stockholders who have several shares and want to sell a significant portion of the shares.
For further ideas and understanding, you can download our shareholder agreement templates here.
