Closely Held Businesses Attorney in Hopkins, Minnesota

Avoiding Shareholder Disputes

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Well shareholder or membership agreements are extremely important in a business relationship, where there are multiple owners in the business. And I have found with my clients, when I ask them and tell them that they need a shareholder or a member agreement, it makes them sit down and kind of think of the future. You know, what’s going to happen if one of us dies, or what’s going to happen if one of us leaves employment?

So it makes them think about situations that might occur in the future, and to get down how they’re going to resolve those situation in such an agreement. So it makes them think for one thing, and it helps define what their relationship is, and how they’re going to get out of their relationship, because not every business situation is going to stay the same. It’s going to change throughout the history of the business, and so the shareholder agreement kind of acts as a guidepost for them to do that.

Minneapolis Estate Planning Attorney Ned Ostenso, discusses what small business shareholder agreements should address.

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