Oklahoma Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• Control #: US-1085BG
• Format: Word; Rich Text

Description

A corporation whose shares are held by a single shareholder or a closely-knit group of shareholders (such as a family) is known as a close corporation. The shares of stock are not traded publicly. A shareholders' agreement may contain provisions relating to any phase of the affairs of a close corporation. Statutes often provide that the agreement may, as between the parties to the agreement, alter or waive the provisions of the general corporation law except those provisions that are specifically exempt from such alteration or waiver. A shareholders' agreement may not be altered or terminated except as provided by the agreement, or by all the parties, or by operation of law.

Oklahoma Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a legal document that outlines the rights and responsibilities of shareholders in a close corporation in Oklahoma, specifically regarding the allocation of dividends among shareholders. A close corporation refers to a privately held corporation with a limited number of shareholders, typically family members or a small group of investors. The primary purpose of this agreement is to establish a framework for distributing dividends among shareholders, which may be different from the pro rata distribution method commonly used in traditional corporations. It allows shareholders to determine specific allocation rules based on various factors such as ownership percentages, capital contributions, or seniority. This type of shareholders' agreement recognizes the unique nature of close corporations, where there is often a close relationship or shared responsibilities among shareholders. It provides flexibility in determining how dividends are distributed, allowing for a more customized approach that aligns with the specific needs and goals of the shareholders involved. Different types of Oklahoma Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation may include: 1. Percentage-based Allocation: This type of agreement distributes dividends based on each shareholder's ownership percentage in the close corporation. Shareholders receive dividends in proportion to their ownership stake, ensuring a fair distribution of profits. 2. Capital Contribution-based Allocation: In this scenario, the allocation of dividends is determined based on the capital contributions made by each shareholder. Shareholders who have contributed a larger amount of capital will receive a higher portion of dividends, reflecting their greater financial stake in the corporation. 3. Seniority-based Allocation: This type of agreement allocates dividends based on the seniority of shareholders, giving priority to those who have been associated with the corporation for a longer duration. Senior shareholders may be entitled to a larger share of dividends, recognizing their greater experience and contribution to the success of the close corporation over time. 4. Customized Allocation: Shareholders may choose to create a unique allocation system based on specific criteria defined by the shareholders' agreement. This could involve combining different allocation methods or developing an entirely different approach that suits the specific circumstances and goals of the close corporation. Overall, the Oklahoma Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation provides a framework for distributing dividends that reflects the shareholders' desires and recognizes the unique dynamics of close corporations. It facilitates transparency, fairness, and effective governance among shareholders, ultimately contributing to the smooth functioning and success of the close corporation.