Wake North Carolina Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Wake
• 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. A Wake North Carolina Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a legally binding document that outlines the terms and conditions pertaining to the distribution of dividends among shareholders in a close corporation located in Wake County, North Carolina. This agreement governs how dividends are allocated based on a predetermined allocation arrangement agreed upon by the shareholders. The purpose of this agreement is to ensure transparency and fairness in the distribution of profits when a close corporation generates dividends. It aims to provide clear guidelines to shareholders on how they will receive their respective share of dividends based on the agreed special allocation arrangement. There are different types or variations of Wake North Carolina Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation that can be created based on the specific needs of the corporation and its shareholders. Some of these variations include: 1. Percentage Allocation: This type of agreement specifies the percentage share of dividends that each shareholder will receive. For example, if there are two shareholders, shareholder A may receive 60% of the dividends, while shareholder B receives 40%. 2. Fixed Amount Allocation: This type of agreement sets a predetermined fixed amount of dividends that each shareholder will receive. For instance, shareholder A may receive $10,000, shareholder B may receive $5,000, and so on. 3. Preferred Allocation: This type of agreement designates certain shareholders as preferred shareholders who receive a higher priority in dividend distribution compared to other shareholders. Preferred shareholders typically have specific rights or privileges associated with their shares, such as the obligation to receive dividends before other shareholders. 4. Proportionate Allocation: This type of agreement allocates dividends proportionally based on the number of shares held by each shareholder. For instance, if shareholder A holds 60% of the shares and shareholder B holds 40%, they will receive dividends in the same proportion. It is important to note that the specific terms and conditions of the Wake North Carolina Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation may vary depending on the corporation's unique circumstances and the preferences of its shareholders. It is advisable for corporations to consult legal professionals to draft an agreement that best suits their needs and complies with relevant local laws and regulations.

A Wake North Carolina Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation is a legally binding document that outlines the terms and conditions pertaining to the distribution of dividends among shareholders in a close corporation located in Wake County, North Carolina. This agreement governs how dividends are allocated based on a predetermined allocation arrangement agreed upon by the shareholders. The purpose of this agreement is to ensure transparency and fairness in the distribution of profits when a close corporation generates dividends. It aims to provide clear guidelines to shareholders on how they will receive their respective share of dividends based on the agreed special allocation arrangement. There are different types or variations of Wake North Carolina Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation that can be created based on the specific needs of the corporation and its shareholders. Some of these variations include: 1. Percentage Allocation: This type of agreement specifies the percentage share of dividends that each shareholder will receive. For example, if there are two shareholders, shareholder A may receive 60% of the dividends, while shareholder B receives 40%. 2. Fixed Amount Allocation: This type of agreement sets a predetermined fixed amount of dividends that each shareholder will receive. For instance, shareholder A may receive $10,000, shareholder B may receive $5,000, and so on. 3. Preferred Allocation: This type of agreement designates certain shareholders as preferred shareholders who receive a higher priority in dividend distribution compared to other shareholders. Preferred shareholders typically have specific rights or privileges associated with their shares, such as the obligation to receive dividends before other shareholders. 4. Proportionate Allocation: This type of agreement allocates dividends proportionally based on the number of shares held by each shareholder. For instance, if shareholder A holds 60% of the shares and shareholder B holds 40%, they will receive dividends in the same proportion. It is important to note that the specific terms and conditions of the Wake North Carolina Shareholders' Agreement with Special Allocation of Dividends among Shareholders in a Close Corporation may vary depending on the corporation's unique circumstances and the preferences of its shareholders. It is advisable for corporations to consult legal professionals to draft an agreement that best suits their needs and complies with relevant local laws and regulations.