Broward Florida Agreement of Shareholders of a Close Corporation with Management by Shareholders

• Category: Corporations - Incorporation
• State: Multi-State
• County: Broward
• Control #: US-0178BG
• Format: Word; Rich Text

Description

A close corporation is a corporation that is exempt from a number of the formal rules usually governing corporations, because of the small number of shareholders it has. The specifics vary by state, but usually a close corporation must not be publicly traded, and must have fewer than a set number of shareholders (usually 35 or so). A close corporation can generally be run directly by the shareholders (without a formal board of directors and without a formal annual meeting). The Broward Florida Agreement of Shareholders of a Close Corporation with Management by Shareholders is a legal document that outlines the rules and regulations governing the operations of a close corporation in Broward County, Florida. In essence, it establishes an agreement between the shareholders of the corporation who are actively involved in managing the company. This type of agreement is specifically designed for close corporations, which are typically smaller-scale companies where the shareholders are actively involved in the day-to-day operations and decision-making processes. The agreement serves as a framework to ensure efficient management, effective decision-making, and fair treatment of shareholders. The Broward Florida Agreement of Shareholders of a Close Corporation with Management by Shareholders commonly addresses several key areas, including: 1. Shareholder Roles and Responsibilities: This section defines the roles, responsibilities, and authority of each shareholder involved in the management of the close corporation. It outlines who will be responsible for specific decision-making areas and the procedures for making such decisions. 2. Voting Rights: The agreement establishes the voting rights of each shareholder and the mechanics for voting on important matters. It can also define the required majority or super majority needed to approve specific actions. 3. Transferability of Shares: This section lays down the guidelines for the transfer of shares among the shareholders. It may include provisions such as rights of first refusal or restrictions on transferring shares to third parties outside the close corporation. 4. Dispute Resolution: The agreement can establish procedures for resolving disputes among the shareholders, including mediation, arbitration, or settlement negotiations. It aims to provide a fair and efficient method for resolving conflicts that may arise. 5. Compensation and Benefits: This section outlines the compensation structure, including salaries, bonuses, profit-sharing, and other benefits for the shareholders involved in the management of the close corporation. 6. Succession Planning: The agreement can address the issue of succession planning within the close corporation. It may provide guidelines for the transfer of management responsibilities in case of retirement, disability, death, or other events affecting the shareholders. It's important to note that while the Broward Florida Agreement of Shareholders of a Close Corporation with Management by Shareholders follows a general framework, there can be variations and customization based on the specific needs and requirements of the close corporation. Different types or variations of this agreement may exist based on the preferences and legal advice of the shareholders involved. These variations can focus on specific aspects such as governance, profit distribution, or decision-making processes, among others.

The Broward Florida Agreement of Shareholders of a Close Corporation with Management by Shareholders is a legal document that outlines the rules and regulations governing the operations of a close corporation in Broward County, Florida. In essence, it establishes an agreement between the shareholders of the corporation who are actively involved in managing the company. This type of agreement is specifically designed for close corporations, which are typically smaller-scale companies where the shareholders are actively involved in the day-to-day operations and decision-making processes. The agreement serves as a framework to ensure efficient management, effective decision-making, and fair treatment of shareholders. The Broward Florida Agreement of Shareholders of a Close Corporation with Management by Shareholders commonly addresses several key areas, including: 1. Shareholder Roles and Responsibilities: This section defines the roles, responsibilities, and authority of each shareholder involved in the management of the close corporation. It outlines who will be responsible for specific decision-making areas and the procedures for making such decisions. 2. Voting Rights: The agreement establishes the voting rights of each shareholder and the mechanics for voting on important matters. It can also define the required majority or super majority needed to approve specific actions. 3. Transferability of Shares: This section lays down the guidelines for the transfer of shares among the shareholders. It may include provisions such as rights of first refusal or restrictions on transferring shares to third parties outside the close corporation. 4. Dispute Resolution: The agreement can establish procedures for resolving disputes among the shareholders, including mediation, arbitration, or settlement negotiations. It aims to provide a fair and efficient method for resolving conflicts that may arise. 5. Compensation and Benefits: This section outlines the compensation structure, including salaries, bonuses, profit-sharing, and other benefits for the shareholders involved in the management of the close corporation. 6. Succession Planning: The agreement can address the issue of succession planning within the close corporation. It may provide guidelines for the transfer of management responsibilities in case of retirement, disability, death, or other events affecting the shareholders. It's important to note that while the Broward Florida Agreement of Shareholders of a Close Corporation with Management by Shareholders follows a general framework, there can be variations and customization based on the specific needs and requirements of the close corporation. Different types or variations of this agreement may exist based on the preferences and legal advice of the shareholders involved. These variations can focus on specific aspects such as governance, profit distribution, or decision-making processes, among others.