The following case study illustrates some of the benefits of a shareholder pact. Wherever a small and medium-sized company has more than one shareholder, even if it is different members of the same family, the signing of a shareholder contract should be considered. The good news is that even if your business is already operational, it`s not too late to enter into a shareholder contract. As you can see in the Susan/Nancy situation, a shareholder pact can be invaluable for every company, regardless of size or industry. It doesn`t need to be complex and can be adapted to your company`s specific situation. It is just like those who enter a `pre-nup` relationship property, it can pay to set rules in advance. This version is designed for a situation in which a single shareholder controls (and probably daily) the business of the company. The introduction of minority shareholders is planned, but the largest shareholder remains under control. The use of a shareholder pact is one of the most effective ways to do so. It is a simple shareholder pact available to small and medium-sized growth companies. The critical need for such agreements to protect your interests is very obvious if: dispute resolution rules would include normal mediation and arbitration clauses, but in circumstances where shareholders simply cannot continue together, there is a «Russian broadcast» or «gun-to-fire» clause (where each party presents a price for the other`s shares and the party offering the highest price and then buys the other`s shares at that price) gives the final conclusion. It is a quick way to manage a shareholder`s exit in which a dispute cannot be resolved, but it obviously represents certain elements of commercial risk. «I found Net Lawman perfect for my needs, and I saved thousands of dollars in legal fees to get a lawyer to replicate these Doucs from scratch.
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