Ohio 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. Ohio Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation refers to a legally binding document that outlines the terms and conditions regarding the allocation of dividends among shareholders in a close corporation registered in Ohio. This agreement is essential as it helps regulate the distribution of profits, protect shareholder interests, and maintain harmony within the corporation. The agreement typically includes several vital clauses that determine how dividends are allocated among shareholders. Some key keywords relevant to this type of agreement include: 1. Close Corporation: A close corporation is a type of corporation where the shares are held by a limited number of shareholders. This agreement is designed specifically for close corporations, distinguishing it from agreements used by other types of business entities. 2. Shareholders: Shareholders are individuals or entities that own shares in the close corporation. The agreement will detail the rights and responsibilities of shareholders, including the allocation of dividends. 3. Dividends: Dividends refer to the distribution of profits to shareholders. The agreement will outline how these dividends are allocated among shareholders, whether based on the number of shares owned, a fixed percentage, or through a special allocation mechanism. 4. Special Allocation: Special allocation in this context refers to a unique mechanism for distributing dividends based on specific criteria defined in the agreement. This could involve taking into consideration factors such as seniority, contribution, or other performance-related metrics. 5. Terms and Conditions: The agreement will contain various terms and conditions that must be followed by the shareholders regarding the allocation of dividends. These may include the frequency of dividend distributions, methods of calculation, and any restrictions or limitations imposed on shareholders. 6. Ohio Corporate Law: The agreement must adhere to the relevant Ohio corporate laws, which govern the establishment and operation of close corporations in the state. It is essential to ensure compliance with these laws to maintain the agreement's validity. Different types or variations of Ohio Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation may exist depending on the specific requirements and circumstances of each corporation. These variations could include terms related to stock options, buy-sell provisions, vesting schedules, or any other unique provisions agreed upon by the shareholders. In conclusion, an Ohio Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a crucial legal document that outlines the rules and procedures for distributing dividends among shareholders in a close corporation. It ensures clarity, fairness, and accountability in the distribution of profits while adhering to the applicable corporate laws in Ohio.

Ohio Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation refers to a legally binding document that outlines the terms and conditions regarding the allocation of dividends among shareholders in a close corporation registered in Ohio. This agreement is essential as it helps regulate the distribution of profits, protect shareholder interests, and maintain harmony within the corporation. The agreement typically includes several vital clauses that determine how dividends are allocated among shareholders. Some key keywords relevant to this type of agreement include: 1. Close Corporation: A close corporation is a type of corporation where the shares are held by a limited number of shareholders. This agreement is designed specifically for close corporations, distinguishing it from agreements used by other types of business entities. 2. Shareholders: Shareholders are individuals or entities that own shares in the close corporation. The agreement will detail the rights and responsibilities of shareholders, including the allocation of dividends. 3. Dividends: Dividends refer to the distribution of profits to shareholders. The agreement will outline how these dividends are allocated among shareholders, whether based on the number of shares owned, a fixed percentage, or through a special allocation mechanism. 4. Special Allocation: Special allocation in this context refers to a unique mechanism for distributing dividends based on specific criteria defined in the agreement. This could involve taking into consideration factors such as seniority, contribution, or other performance-related metrics. 5. Terms and Conditions: The agreement will contain various terms and conditions that must be followed by the shareholders regarding the allocation of dividends. These may include the frequency of dividend distributions, methods of calculation, and any restrictions or limitations imposed on shareholders. 6. Ohio Corporate Law: The agreement must adhere to the relevant Ohio corporate laws, which govern the establishment and operation of close corporations in the state. It is essential to ensure compliance with these laws to maintain the agreement's validity. Different types or variations of Ohio Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation may exist depending on the specific requirements and circumstances of each corporation. These variations could include terms related to stock options, buy-sell provisions, vesting schedules, or any other unique provisions agreed upon by the shareholders. In conclusion, an Ohio Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a crucial legal document that outlines the rules and procedures for distributing dividends among shareholders in a close corporation. It ensures clarity, fairness, and accountability in the distribution of profits while adhering to the applicable corporate laws in Ohio.