Harris Texas Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Harris
• 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. Harris Texas Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation: A Harris Texas Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a legally binding contract that outlines the distribution of dividends among shareholders in a close corporation based in Harris County, Texas. A close corporation refers to a privately held company where shares are not publicly traded and usually has a limited number of shareholders. In such corporations, it is common to have a specific agreement that governs the rights, responsibilities, and distribution of profits among shareholders. The purpose of this particular agreement is to establish a mechanism for dividing dividends differently among shareholders, deviating from the traditional proportional allocation based on share ownership. This provision allows for a more customized distribution of profits, ensuring that certain shareholders receive a higher allocation than others based on predetermined criteria. The Harris Texas Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation can include various types, such as: 1. Performance-based Allocation Agreement: In this type of agreement, shareholders' dividends are distributed according to their individual performance or contribution to the company's success. The agreement may outline specific metrics or performance indicators, such as sales targets, project completion milestones, or individual achievements, to determine the dividend allocation. 2. Seniority-based Allocation Agreement: This agreement grants higher dividend allocations to shareholders based on their length of service or seniority within the corporation. Shareholders who have been with the company for a longer duration may receive a larger share of dividends as recognition for their loyalty and commitment. 3. Capital Contribution-based Allocation Agreement: This type of agreement allocates dividends based on the amount of capital each shareholder has contributed to the corporation. Shareholders who have invested a higher amount of capital are entitled to receive a correspondingly larger share of dividends. 4. Special Expertise or Intellectual Property-based Allocation Agreement: In certain cases, shareholders with specialized expertise, valuable intellectual property rights, or unique contributions to the company's operations may be entitled to a higher dividend allocation. This type of agreement recognizes and rewards shareholders who bring exceptional value to the corporation. It is important to note that the specific terms and conditions of a Harris Texas Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation may vary depending on the unique requirements and preferences of the shareholders involved. Legal counsel is strongly advised to draft and customize the agreement to ensure its validity and enforceability.

Harris Texas Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation: A Harris Texas Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a legally binding contract that outlines the distribution of dividends among shareholders in a close corporation based in Harris County, Texas. A close corporation refers to a privately held company where shares are not publicly traded and usually has a limited number of shareholders. In such corporations, it is common to have a specific agreement that governs the rights, responsibilities, and distribution of profits among shareholders. The purpose of this particular agreement is to establish a mechanism for dividing dividends differently among shareholders, deviating from the traditional proportional allocation based on share ownership. This provision allows for a more customized distribution of profits, ensuring that certain shareholders receive a higher allocation than others based on predetermined criteria. The Harris Texas Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation can include various types, such as: 1. Performance-based Allocation Agreement: In this type of agreement, shareholders' dividends are distributed according to their individual performance or contribution to the company's success. The agreement may outline specific metrics or performance indicators, such as sales targets, project completion milestones, or individual achievements, to determine the dividend allocation. 2. Seniority-based Allocation Agreement: This agreement grants higher dividend allocations to shareholders based on their length of service or seniority within the corporation. Shareholders who have been with the company for a longer duration may receive a larger share of dividends as recognition for their loyalty and commitment. 3. Capital Contribution-based Allocation Agreement: This type of agreement allocates dividends based on the amount of capital each shareholder has contributed to the corporation. Shareholders who have invested a higher amount of capital are entitled to receive a correspondingly larger share of dividends. 4. Special Expertise or Intellectual Property-based Allocation Agreement: In certain cases, shareholders with specialized expertise, valuable intellectual property rights, or unique contributions to the company's operations may be entitled to a higher dividend allocation. This type of agreement recognizes and rewards shareholders who bring exceptional value to the corporation. It is important to note that the specific terms and conditions of a Harris Texas Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation may vary depending on the unique requirements and preferences of the shareholders involved. Legal counsel is strongly advised to draft and customize the agreement to ensure its validity and enforceability.