Louisiana Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation. A Louisiana Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a legally binding document that outlines the rights and responsibilities of shareholders in a close corporation located in the state of Louisiana. This agreement includes provisions for the allocation of dividends among shareholders, which differ from standard dividend distribution methods in a close corporation. In a close corporation, shareholders are typically allowed more flexibility in determining how dividends are distributed. The Louisiana Shareholders' Agreement with Special Allocation of Dividends allows shareholders to agree upon a specific allocation method for dividends, rather than adhering to the proportionate ownership interests of each shareholder. Different types of Louisiana Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation may include: 1. Proportionate Allocation Agreement: This type of agreement allocates dividends to each shareholder based on their proportionate ownership interest in the close corporation. It follows the standard distribution method where the shareholder receives dividends in direct proportion to their ownership stake. 2. Preferred Allocation Agreement: Under this agreement, certain shareholders are given priority in receiving dividends over others. These preferred shareholders, usually those with seniority or specific rights, receive their dividends before the remaining shareholders are entitled to any distribution. 3. Fixed Allocation Agreement: In this type of agreement, dividends are allocated to shareholders based on a predetermined fixed amount or percentage. This fixed allocation can be determined by the shareholders based on their individual circumstances and agreements. 4. Performance-Based Allocation Agreement: This agreement allocates dividends to shareholders based on specific performance metrics or milestones. Shareholders who contribute more to the corporation's growth or show exceptional performance may receive a higher dividend allocation. 5. Hybrid Allocation Agreement: A hybrid allocation agreement combines elements of different dividend allocation methods. It allows shareholders to determine a customized allocation method that suits their specific needs, combining elements such as proportionate allocation, preferred allocation, or fixed allocation. The Louisiana Shareholders' Agreement with Special Allocation of Dividends is crucial for clarifying the rights and expectations of shareholders in a close corporation regarding dividend distribution. It ensures transparency, fairness, and stability among shareholders. It is advisable to consult legal professionals experienced in Louisiana corporate laws when drafting or modifying such agreements to comply with the state's regulations.