shareholder control agreement
- It's a signed agreement by all shareholders that allows them to take over certain areas of corporate governance, such as electing directors and officers, issuing dividends, employing shareholders, or resolving disputes, typically overseen by directors and officers
- The company's co-owners decided to make a shareholder control agreement to stabilize the decision-making process.
- In the shareholder control agreement, it was specified who would have the power to arbitrate disputes.
- To mitigate conflicts and streamline procedures, the small business opted for a shareholder control agreement.