{"componentChunkName":"component---src-templates-blog-post-ts","path":"/blog-bite-why-should-companies-execute-an-effectively-drafted-shareholders-agreement/","result":{"data":{"site":{"siteMetadata":{"title":"Clausehound Blog","author":"Joshua Koudys"}},"markdownRemark":{"id":"b1cedfa5-e779-5dc2-8f0e-40be2787e694","excerpt":"This article posted on our partner site Mondaq.com discusses why companies should execute a shareholders’ agreement. The author outlines some of the most common…","html":"<p><a href=\"http://www.mondaq.com/canada/x/304372/Shareholders/Should+Your+Company+Have+A+Shareholder+Agreement\" target=\"_blank\" rel=\"nofollow noopener\">This article posted on our partner site Mondaq.com</a> discusses why companies should execute a <strong>shareholders’ agreement</strong>.</p>\n<p>The author outlines some of the most common and important shareholder provisions and reviews the rights that can be specified and, thus, protected under effectively drafted shareholder provisions (e.g., right of first refusal before a shareholder is able to sell shares to third parties outside the company, right to require a specified percentage of shareholders’ approval for major management decisions, pre-emptive rights that protect shareholders’ ownership percentages upon future share issuances by the company).</p>\n<p>The author, however, notes that shareholders’ agreements, which become contractually binding if signed, should be tailored to fit the individual circumstances of each company and its shareholders.</p>\n<p>This comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!</p>","frontmatter":{"title":"Blog Bite: Why should companies execute an effectively drafted shareholders' agreement?","date":"April 03, 2014","description":"This article posted on our partner site Mondaq.com discusses why companies should execute a shareholders' agreement.","author":{"id":"alina@clausehound.com","first":"Alina","last":null,"bio":null,"image":null},"tags":["Shareholders Agreement","Mondaq","Learn","Canada (General)"]}}},"pageContext":{"slug":"/blog-bite-why-should-companies-execute-an-effectively-drafted-shareholders-agreement/","previous":{"fields":{"slug":"/when-fundraising-know-your-accredited-investor/"},"frontmatter":{"title":"When Fundraising, “Know” Your “Accredited Investor”","tags":["Long Form","Corporation","Investor","Term Sheet","Independent Legal Advice","Accredited Investor","Due Diligence","Prospectus Exemption","Corporate Finance","Rajah","Articles of Incorporation","Investor Term Sheet"],"author":{"id":"rajah@cobaltcounsel.com","first":"Rajah","last":"Lehal"}}},"next":{"fields":{"slug":"/blog-bite-what-kinds-of-corporate-vehicles-are-available-in-russia/"},"frontmatter":{"title":"What kinds of corporate vehicles are available in Russia?","tags":["Jurisdiction Shopping","Mondaq","Learn","Russia"],"author":{"id":"alina@clausehound.com","first":"Alina","last":null}}}}}}