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Form #1246Agreement among stockholders regarding management of business, division of profits, and distribution of assets.
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Agreement among stockholders regarding management of business, division of profits, and distribution of assets.
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Agreement among
stockholders regarding management of business, division of profits, and
distribution of assets.
Agreement made _________[date], between
_________[shareholder], of _________[address], City of _________,
County of _________, State of _________, _________[shareholder], of
_________[address], City of _________, County of _________, State of
_________, and _________[shareholder], of _________[address],
City of _________, County of _________, State of _________, herein collectively
called the shareholders.
RECITALS
1. The shareholders are the respective owners of the
shares set forth opposite their names below of the capital stock of _________[corporation],
a _________[state of incorporation] close corporation. Such shares
constitute all of the issued and outstanding stock of the corporation.
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2. The shareholders desire to become parties to, and
to subject their shares of stock in the corporation to a shareholders'
agreement as prescribed by Section _________ of the _________[General
Corporation Law] of the State of _________.
In consideration of the mutual covenants expressed
herein, the parties agree as follows:
SECTION ONE.
OFFICERS
(a). Employment. The following shall be the officers
of the corporation until his or their employment is terminated as provided in
Section One (e):
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(b). Salaries. The salaries of the respective officers
shall be _________[specify amounts and times payable, or set forth method of
determination].
(c). Duties. Notwithstanding anything to the contrary
contained in the bylaws of the corporation and except as required by the
_________[General Corporation Law] of the State of _________, the
officers, in the manner agreed among them, shall manage all the business and
affairs of the corporation and exercise all its corporate power. In the
following instances, however, the officers may act only after obtaining the
approval of the outstanding shares in the manner provided in the bylaws:
_________[set forth acts for which shareholder approval is desired, such as
issuing or transferring shares of stock or selling all or substantially all of
assets of corporation].
(d). Indemnification. Each officer agrees to indemnify
the shareholders and their successors and assigns from and against any
liability incurred as a result of the exercise of the above powers and duties
by such officer.
(e). Termination. The employment of each officer shall
terminate on the occurrence of any one of the following events:
(1). He ceases to be a shareholder.
(2). He voluntarily resigns.
(3). He declares bankruptcy, dies, or becomes
physically incapacitated.
(4). He is declared of unsound mind by an order of
court.
(5). He is convicted of a felony.
(6). He reaches the age of _________.
(7). On the involuntary dissolution of the corporation
as provided by Section _________ of the _________[General Corporation Law]
of the State of _________.
In the event of the termination of employment of any
one of the officers, his replacement shall be selected in the manner provided
in the bylaws.
SECTION TWO.
DIVIDENDS
Subject to the limitations contained in the provisions
of Section _________ of the _________[General Corporation Law] of the
State of _________, the shareholders shall be entitled to receive each year
from the corporation dividends in an amount equal to the percentage of net
profits of the corporation set forth opposite their names below:
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SECTION THREE.
DISTRIBUTIONS IN LIQUIDATION
Subject to the limitations contained in Section
_________ of the _________[General Corporation Law] of the State of
_________, on voluntary dissolution of the corporation, distribution of the
assets of the corporation shall be made as follows: _________.
SECTION FOUR.
WAIVER OF MEETINGS
No meetings of shareholders or directors need be held,
but may be called as provided in the bylaws of the corporation.
SECTION FIVE.
RECORDS AND REPORTS
_________ shall maintain the books, records, and other
documents required by Section _________ of the _________[General Corporation
Law] of the State of _________.
SECTION SIX.
BINDING EFFECT
This agreement shall inure to the benefit of and be
binding on the successors and assigns of the parties.
SECTION SEVEN.
GOVERNING LAW
This agreement shall be governed and construed as
prescribed by the laws of the State of _________.
SECTION EIGHT.
FILING OF AGREEMENT
A duplicate original of this agreement shall be filed
with the secretary of the corporation for inspection by any prospective
purchaser of shares of stock in the corporation.
The parties have executed this agreement at _________[designate
place of execution] on the day first above written.
[Signatures]
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or any other commercial use is prohibited. This includes reposting forms from this
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Your use of this site constitutes your acceptance of our terms of use and your agreement
to hold this site, its officers, employees and any contributors to this site harmless
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These forms are provided to assist business owners and others in understanding important
points to consider in different transactions. They are offered with the understanding
that no legal advice, accounting, or other professional service is being offered
by these documents or on this website. Laws vary in the different states. Agreements
acceptable in one state may not be enforced the same way under the laws of another
state. Also, agreements should relate specifically to the particular facts of each
situation. Therefore, it is important to consult legal counsel whenever utilizing
these forms. The Forms are not a substitute for legal advice YourFreeLegalForms.com
is not engaged in recommending or referring members on the site or making claims
about the competence, character or qualifications of its participating members.
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