Unanimous Shareholder Agreements or a USA. What is it and what can it do for me?
A Unanimous Shareholder Agreement is just that: an agreement between and amongst all the shareholders of the corporation on how they will run the corporation. It can be a lifesaver when a dispute arises and it provides guidance to the ongoing operations of the corporation.
What can it do for you? Literally, a USA can put money in your pocket.
At Galbraith Law, we have seen the issue from both sides.
In the absence of the USA, we have seen a simple disagreement between partners lead to the demise of the business. A dispute between shareholders consumes all their focus and energy and they have no method for resolving their dispute. In the meantime, the business spirals downwards and eventually crashes. Everybody loses everything they have invested.
We have seen a USA save a business. The rules in the USA provide a method for a buyout between shareholders. One or more shareholders buy out the other. The departing shareholder gets paid for their shares (although maybe not as much as they would like - see the previous paragraph for the alternative). The remaining shareholders are left to carry on business with a minimum of disruption.
At Galbraith Law, we have been preparing Unanimous Shareholder Agreements for over 25 years. Please contact us now to discuss the particular requirements for your corporation.