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Emerging Business Seminar (Phoenix) – How (and Why) To Create Shareholder (and Operating) Agreements

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EB-Headers-2018-HowandWhyToPrepareAShareholdersOperatingAgreementDoes your business have more than one owner? If so, then a comprehensive shareholders’ agreement (or operating agreement for LLCs) may be essential.

For companies of all sizes, it is one of the most important, yet most overlooked agreements. At minimum, a properly drafted shareholders’ agreement may ensure that the owners’ vision, goals and expectations are understood and aligned. And in the event of a shareholder dispute, it may literally save the life of your company (as shareholder disputes are one of the leading causes of litigation).

Snell & Wilmer invites you to the next program in the Emerging Business Seminar SeriesTM, where partners Brian J. Burt and Bill Kastin will discuss how to prepare shareholders’ and operating agreements.

Topics for this complimentary seminar include:

  • Why every company with more than one owner may want to consider a shareholders’ or operating agreement
  • Management issues
    • Understanding the decisions every company will face
    • Structuring the management hierarchy
    • Selecting (and replacing) decision makers at each level
    • Ensuring continuity of management
  • Economic issues
    • Determining what constitutes “profits”
    • Deciding how and when the profits get distributed
    • Capital calls
    • Issuing, transferring and redeeming shares/units
    • Anti-dilution
    • Planning for an eventual liquidity event
  • Tax considerations
    • Avoiding phantom income in S corporations and LLCs
    • Preserving (and revoking) S corporation status
  • Information and audit rights
  • Dispute resolution
    • Why litigation or arbitration may not work
    • Buy/sell provisions
    • Alternative dispute resolution mechanisms
    • The best (and easiest) way to resolve disputes

For more information, and to RSVP, click here.