The Iowa Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a legal document that outlines the terms and conditions regarding the distribution of profits among shareholders in a close corporation based in Iowa. In such a corporation, where there are only a limited number of shareholders, it is essential to establish a clear agreement to specify how dividends will be allocated and distributed. This agreement serves as a means to ensure fair and equitable distribution of dividends, considering various factors such as the contribution and ownership percentage of each shareholder. It provides a framework to determine the allocation of dividends and prevents any potential disputes or conflicts among shareholders. There are different types of Iowa Shareholders' Agreements with Special Allocation of Dividends among Shareholders in a Close Corporation that can be customized based on the specific needs and preferences of the shareholders. Some of these types may include: 1. Proportional Allocation Agreement: This type of agreement allocates dividends proportionally based on the ownership percentage of each shareholder. For example, if a shareholder owns 30% of the corporation, they would receive 30% of the total dividend distribution. 2. Fixed Allocation Agreement: In this type of agreement, shareholders agree to allocate dividends based on a fixed amount or percentage that remains constant regardless of changes in ownership percentage. This provides stability and predictability for shareholders. 3. Performance-Based Allocation Agreement: This agreement allocates dividends based on each shareholder's performance or contribution to the corporation. Shareholders who actively contribute to the growth and success of the company may be entitled to a higher allocation of dividends. 4. Hybrid Allocation Agreement: This type of agreement combines different allocation methods mentioned above. It allows shareholders to devise a custom allocation formula based on a combination of factors such as ownership percentage, performance, and fixed amounts. Regardless of the specific type, an Iowa Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a vital tool for shareholders to ensure transparency, fairness, and stability in the distribution of dividends. It is recommended to seek legal advice and tailor the agreement to suit the unique needs and circumstances of the corporation and its shareholders.