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A well-designed shareholder and partnership agreement aligns interests, defines governance, and reduces the risk of costly disputes. Clear provisions for voting thresholds, profit sharing, transfer restrictions, and buy-sell mechanisms help owners operate with confidence. These documents also support succession planning, attracting investment, and ensuring business continuity across changing leadership.
A comprehensive approach yields enforceable provisions for ownership changes, share transfers, and decision-making, improving governance consistency even as leadership evolves. Owners gain confidence knowing there is a clear plan for critical moments.
Our firm offers practical, client-focused guidance tailored to Landis and North Carolina businesses. We translate complex concepts into plain language, helping owners craft agreements that reflect their goals, protect their interests, and support sustainable growth.
We provide guidance on implementing the agreement’s provisions and offer periodic reviews to ensure continued alignment with business goals and regulatory updates.
A shareholder agreement serves as the primary governance document for closely held businesses. It clarifies ownership rights, voting thresholds, and how shares may be transferred, reducing ambiguity during major decisions. It also sets out exit strategies to protect remaining owners and the continuity of the business. Seek legal guidance to tailor terms to your situation.
A partnership agreement is advisable when two or more individuals intend to operate a business together with shared profits and decision-making authority. It formalizes roles, capital contributions, profit distribution, and dispute resolution. Even for small teams, a written agreement helps prevent miscommunications and supports orderly growth.
Buy-sell provisions provide a framework for what happens when an owner exits, dies, or becomes disabled. They typically define valuation methods, payment terms, and timelines. Having these terms in writing minimizes disruption, maintains stability, and protects the interests of all remaining owners.
Governance provisions should be reviewed periodically, especially after major events like new funding, ownership changes, or leadership transitions. Regular updates keep the document aligned with current goals and regulatory requirements, helping prevent gaps that could lead to disputes or governance challenges.
Yes. Succession planning is often embedded in these agreements, outlining how ownership will transition to the next generation or key successors. Clear succession provisions help preserve business value, preserve relationships, and ensure continuity during leadership changes.
Disputes may be resolved through mediation or arbitration per the agreement’s provisions, reducing court time and cost. If necessary, the document can specify remedies and how to proceed with litigation in a controlled, predictable manner.
Tax considerations can influence ownership structures and vesting schedules. We coordinate with tax professionals to ensure that the agreement minimizes tax inefficiencies and complies with applicable laws, without compromising governance or exit objectives.
Drafting timelines vary with complexity, but a straightforward agreement may take several weeks from initial consultation to execution. More complex arrangements with multiple owners or sophisticated buy-sell mechanics can require additional time for negotiation and review.
Prepare ownership details, capital contributions, current governance structure, and any anticipated changes in ownership or leadership. Gather any existing agreements, financial projections, and preferred valuation methods to help tailor the document to your goals.
Valuation methods range from fixed valuation to formulas tied to earnings or book value. The right method balances fairness and practicality for your owners and reflects anticipated future performance. We can help select and document a method that aligns with your objectives.
