District of Columbia 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. A District of Columbia Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a legal document that outlines the specific conditions and provisions regarding the distribution of dividends among shareholders in a close corporation registered in the District of Columbia. This agreement is designed to address the needs and concerns of shareholders in a close corporation, which is a corporation that typically has a limited number of shareholders, often family members or a small group of investors. It allows for the customization and allocation of dividends based on specific criteria agreed upon by the shareholders. Different types of District of Columbia Shareholders' Agreements with Special Allocation of Dividends among Shareholders in a Close Corporation may include: 1. Proportional Allocation Agreement: This type of agreement allocates dividends based on each shareholder's ownership percentage in the close corporation. For example, if a shareholder owns 30% of the company's shares, they would be entitled to receive 30% of the dividends. 2. Preferred Shareholder Agreement: In this type of agreement, certain shareholders, often those holding preferred shares, are given priority when it comes to the allocation of dividends. Preferred shareholders may have specific rights or privileges, such as receiving a fixed dividend amount before any dividends are distributed to other shareholders. 3. Performance-Based Allocation Agreement: This agreement bases the allocation of dividends on predetermined performance metrics or benchmarks, such as achieving specific revenue goals or profitability targets. Shareholders who contribute significantly to achieving these performance goals may be entitled to a larger share of the dividends. 4. Capital Contribution Agreement: This type of agreement allocates dividends based on the amount of capital each shareholder has contributed to the close corporation. Shareholders who have made larger capital investments may receive a greater share of the dividends. All these District of Columbia Shareholders' Agreements with Special Allocation of Dividends among Shareholders in a Close Corporation aim to provide a clear framework for distributing dividends, ensuring fairness and transparency among the shareholders. They enable customization based on the needs and objectives of the close corporation and its shareholders while complying with the regulatory requirements of the District of Columbia.

A District of Columbia Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a legal document that outlines the specific conditions and provisions regarding the distribution of dividends among shareholders in a close corporation registered in the District of Columbia. This agreement is designed to address the needs and concerns of shareholders in a close corporation, which is a corporation that typically has a limited number of shareholders, often family members or a small group of investors. It allows for the customization and allocation of dividends based on specific criteria agreed upon by the shareholders. Different types of District of Columbia Shareholders' Agreements with Special Allocation of Dividends among Shareholders in a Close Corporation may include: 1. Proportional Allocation Agreement: This type of agreement allocates dividends based on each shareholder's ownership percentage in the close corporation. For example, if a shareholder owns 30% of the company's shares, they would be entitled to receive 30% of the dividends. 2. Preferred Shareholder Agreement: In this type of agreement, certain shareholders, often those holding preferred shares, are given priority when it comes to the allocation of dividends. Preferred shareholders may have specific rights or privileges, such as receiving a fixed dividend amount before any dividends are distributed to other shareholders. 3. Performance-Based Allocation Agreement: This agreement bases the allocation of dividends on predetermined performance metrics or benchmarks, such as achieving specific revenue goals or profitability targets. Shareholders who contribute significantly to achieving these performance goals may be entitled to a larger share of the dividends. 4. Capital Contribution Agreement: This type of agreement allocates dividends based on the amount of capital each shareholder has contributed to the close corporation. Shareholders who have made larger capital investments may receive a greater share of the dividends. All these District of Columbia Shareholders' Agreements with Special Allocation of Dividends among Shareholders in a Close Corporation aim to provide a clear framework for distributing dividends, ensuring fairness and transparency among the shareholders. They enable customization based on the needs and objectives of the close corporation and its shareholders while complying with the regulatory requirements of the District of Columbia.