Home Q&A Forum How to track shareholders agreements?

Startup

Shareholders Agreement

Ohio

Asked on Jun 12, 2023

How to track shareholders agreements?

I am a business owner and I have recently incorporated my business. As part of the incorporation process, I have created a shareholders agreement with my co-founders. I am looking to ensure that this agreement is properly tracked, documented, and monitored over time. I am seeking guidance on the best methods to track shareholders agreements and any advice on how to ensure the agreement is being followed.

Answers from 1 Lawyer

Answer

Startup

Ohio

Answered 1035 days ago

Paul S.

ContractsCounsel verified

Business Lawyer
Licensed in California, Ohio
Free Consultation
View Paul S.
5.0 (18)
Member Since:
August 4, 2020

There are cap table management companies such as Carta and Pulley, that can help with this (for a fee). As long as your company has only issued common stock, maintaining a cap table and stock ledger in Excel is more than adequate. I also recommend storing PDFs of the stock purchase agreements in a cloud-based folder labeled "Stock Purchase Agreements." In terms of officer roles, the corporation's Secretary is responsible for maintaining these shareholder records.

Use of the ContractsCounsel Q&A Forum does not create an attorney-client relationship between User and any Lawyer User. The Forum is not a substitute for legal advice from a lawyer but is intended to be educational and to help the user determine if legal services are necessary. The Forum, Content, and communications on the Forum do not constitute legal advice.
Meet some lawyers on our platform

Lori B.

185 projects on CC
CC verified
View Profile

Heather B.

52 projects on CC
CC verified
View Profile

Gregory B.

206 projects on CC
CC verified
View Profile

Frank V.

15 projects on CC
CC verified
View Profile

People Also Asked

Business Contracts

Shareholders Agreement

Ohio

Asked on May 16, 2023

Can a shareholders agreement be digital?

I am a business owner looking to create a Shareholders Agreement with my business partner. We both have busy schedules and would prefer to avoid the hassle of having to meet in person to sign a physical document. I am wondering if it is possible to create a digital Shareholders Agreement that we could both sign electronically.

View Paul S.
5.0 (18)

Paul S.

Answered Jun 6, 2023

Sure. Gathering people around a conference room table to sign documents is so 1990s. I have clients all over the world, and routinely have them sign documents of all types (shareholder agreements, board resolutions, merger agreements, etc.) using platforms like Docusign. I couldn't function without it.

Read 1 attorney answer>

Small Business

Shareholders Agreement

Florida

Asked on Jun 15, 2023

Shareholders agreement and dividend policies?

I am a shareholder in a small business and am looking to understand the implications of a shareholders agreement and dividend policies on my ownership rights. I am considering entering into a shareholders agreement but want to ensure that I understand how dividends will be paid out and what rights I will have to receive my share of profits.

View Daniel D.
5.0 (3)

Daniel D.

Answered Jul 18, 2023

The shareholder agreement should specify your ownership rights and the policy on dividends. Or, the LLC Operating Agreement or Corporate By Laws could state when, to who and how frequent dividends are given out. Without seeing the shareholder agreement it is difficult to say what your rights will be and how the dividends will be paid out as each small business is unique.

Read 1 attorney answer>

Minority Shareholder

Shareholders Agreement

North Carolina

Asked on Dec 5, 2024

Can a minority shareholder in a company be forced to sell their shares under a shareholder agreement?

I am a minority shareholder in a company and recently discovered that there is a shareholder agreement in place. In reviewing the agreement, I noticed a provision that states that if the majority shareholders want to sell the company, they have the right to force the minority shareholders to sell their shares as well. This concerns me as it seems unfair that I could be forced to sell my shares against my will. I would like to know if this provision is legally enforceable and what rights I have as a minority shareholder in this situation.

View David W.
5.0 (1)

David W.

Answered Dec 6, 2024

Yes, a minority shareholder can be compelled to sell their shares under certain conditions outlined in a shareholder agreement. These agreements often include provisions that address scenarios in which a minority shareholder might be required to sell their shares. Some of these key provisions include Drag-Along Rights and Buy-Sell Agreements.

Read 1 attorney answer>

Corporate

Shareholders Agreement

Connecticut

Asked on Jul 8, 2023

Pros & cons of shareholders agreements?

I am a shareholder in a small business and am looking to draw up a shareholders agreement. I understand that a shareholders agreement can protect my interests as a shareholder, but I am not sure of the pros and cons of such an agreement. I would like to know more about the benefits and drawbacks of having a shareholders agreement in place.

View Thomas L.
5.0 (1)

Thomas L.

Answered Jul 21, 2023

Shareholders have rights and powers under the corporate law of the jurisdiction in which the company is incorporated. But many stockholders, especially in private companies, demand additional powers and protections.

Read 1 attorney answer>

Business

Shareholders Agreement

Connecticut

Asked on Aug 4, 2023

How does a shareholders agreement work?

I am an individual looking to start a business with several other partners. We are in the process of forming a company and want to ensure that everyone is on the same page in terms of expectations and responsibilities. We are considering a shareholders agreement, but I am unsure how it works and how it will affect our business. I would like to get a better understanding of how a shareholders agreement works and how it can be beneficial to our business.

View Thomas L.
5.0 (1)

Thomas L.

Answered Aug 15, 2023

A shareholders' agreement generally provides specified outcomes on issues that require a stockholder vote. Thus, who is on the board of directors, the sale of the company, and other major issues like that. The agreement requires that the stockholders vote in the agreed upon manner to enforce the agreement.

Read 1 attorney answer>

Find lawyers and attorneys by city