LAW 204 Chapter Notes - Chapter 7: Arbitration Clause, Stock Certificate
9 Mar 2021
School
Department
Course
Professor
Document Summary
Most shareholders" agreements will specifically require that certain individuals always be elected board members and officers of the corporation. The agreements will also provide how decisions will be made among those board members. Special attention should be made to situations where one shareholder has significantly more power than the other shareholders. Along with providing for the directors and officers of the corporation, it can be helpful to specifically provide for the methods of management and operation of the corporation. The shareholders" agreement can provide that certain shareholders will be responsible for certain activities, whether they be sales activities, financial and accounting activities, or operational activities. These sections can also discuss the authority of each individual shareholder to act on behalf of the corporation and enter into contractual obligations. All well-drafted contractual obligations provide for the commencement and termination of the obligations therein.
