TCVN Workshop Orange County. Why all the Fuss About Shareholders' Agreements? In order to protect both the corporation and its shareholders from disruption, the corporation and its shareholders should adopt a shareholders' agreement (also known as a "buy-sell" agreement). The primary reasons for entering into a shareholders' agreement are to provide for the disposition of the corporation's shares upon one of a series of so-called "triggering events," to value the shares in such event and to restrict voluntary transfers of shares to third parties. Failure to provide a mechanism for transferring shares on the occurrence of any such triggering event will enable the shareholders to transfer shares to a third party (perhaps, even a competitor) without restriction. Come learn about the importance of shareholders' agreements for any early stage company by joining us for a real-life case study in which things could have gone "terribly wrong." See http://www.tcvn.org |