Northern Virginia Shareholder Agreement Lawyers
What is a Shareholder Agreement?
In a large corporation, the roles and rights of the shareholders are defined by the constitutional documents. These often allow for the free exchange of some or all of the investors’ shares on the open market. Naturally, in the case of smaller business concerns, this type of fungibility is not practical and can be detrimental to the operation of the business. That’s where a shareholder agreement comes into place. A shareholder agreement is a document that supplements the constitutional documents to place additional restrictions on investors.
The Importance Of A Shareholder Agreement
All investors have legitimate concerns when it comes to the stock in a company in which they’ve invested. Who else will be able to hold shares of the company? Who’s going to manage the business? What will occur upon a shareholder’s death, disability, or termination? How will the shares’ value be determined? Before any company incorporates, questions like these need to be addressed by both the management and the investors. Once these matters are decided, they need to be detailed in a well-written Shareholder Agreement. This can prevent things like the shares in the company being sold to an undesirable investor, shares transferred in such a way that would cause an imbalance of power, or shares being sold at an inappropriate value.
Experienced Virginia Business Formation Attorneys
The Business Division attorneys of HALE BALL MURPHY, PLC has extensive experience in preparing shareholder agreements for their Virginia corporate clients. For decades, the Business Division lawyers have been preparing the legal documents that are necessary to form, operate and expand businesses into corporations. This experience has proven invaluable to the business owners who come to us. After forming many hundreds of businesses, our shareholder agreement lawyers are familiar with the issues and concerns that could affect our Virginia corporate clients. At HALE BALL MURPHY, PLC, we believe that the most effective way to avoid future legal battles to create solid and clear shareholder agreements.
HALE BALL MURPHY, PLC serves new and existing businesses in Northern Virginia with their business formation and transformation needs, as well as important tax information. Whether you have broad business questions you need answers to, or something specific in mind (ex. Subchapter S Corporations), our attorneys can assist you with any legal aid you might need. We can assist with both emerging and well established businesses.
If you have a question about any type of business matter, we encourage you to schedule a confidential consultation with one of our Northern Virginia lawyers. To make an appointment call us at the above telephone number 1-703-591-4900 or use the contact form below.
Since 1980 the AV-rated law firm of HALE BALL MURPHY, PLC has served the legal needs of individuals and businesses. Our team of attorneys include lawyers named to Super Lawyer and Rising Star lists, as well as attorneys with advanced legal degrees, specialty certifications and lawyers who teach their areas of practice to other lawyers.
Use the contact form on this page to schedule a consultation, or call 703-591-4900.
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