Pleasanton Attorneys Manage Shareholder Relations
Facilitating corporate governance through sound shareholder agreements
Companies seeking investors and those wishing to keep their current shareholders happy must make clear the relationship between capital investors and the company. Without specific shareholder agreements spelling out rights, duties and privileges, your company risks shareholder discontent that can lead to divestment, revolt or litigation. Garcia & Gurney, ALC helps companies of all sizes manage their shareholder relations with specific and detailed agreements that protect shareholder rights, anticipate potential disputes, and provide mechanisms for resolving conflicts before they become an impediment to operations.
Experienced attorneys help entrepreneurs start on a solid footing
The San Francisco Bay Area and Tri-Valley are fertile grounds for entrepreneurial businesses. One of the ways Garcia & Gurney, ALC partners in your business success is by helping you establish a solid working foundation with your investors.
In essence, a shareholder agreement is a voluntary, consensual contract, which includes basic terms such as the following:
- Eligibility — Vetting shareholders and board members is especially important for startups, since having a significant investor demand a buyout or losing a pivotal member of your board can undermine operations, sometimes irrevocably. For your investors, mutual trust is as important as faith in your company’s vision.
- Contingencies — Despite proper vetting, investors can suffer unforeseen circumstances, such as death, disability, or bankruptcy that prevents their continued participation. Corporate officers may perform inadequately or even dishonestly. Your company must have clear guidelines for dealing with these circumstances.
- Value — You must set a price for your company’s shares.
- Company’s obligations — The duties of the company toward its shareholders must be spelled out. If a shareholder must withdraw, does the company repurchase shares, and for how much? Is the company required to buy insurance to cover a repurchase, or will the remaining shareholders have to reach into their own pockets?
- Buy-sell agreements — Companies wanting to create a market for their shares can set rules for purchase and sale.
Many viable businesses endure shareholder disputes that could have been avoided through proper planning and the drafting of clear, comprehensive shareholder agreements.
Contact a trusted attorney for shareholder agreements in Pleasanton
Garcia & Gurney, ALC drafts, reviews and negotiates shareholder agreements for entrepreneurs and existing businesses as well as for investors. Our reliable attorneys address all pertinent issues to help ensure smooth operations and observance of shareholder rights. To speak with an experienced corporate attorney serving Pleasanton and other cities in Alameda and Contra Costa Counties, call us today at 925-468-0400 or contact us online.