There are a number of reasons to have a shareholder’s agreement, particularly if your corporation has relatively few shareholders and most or all of them work for the company. For example you may want to:
- Keep stock issued by the corporation or sold by a shareholder with remaining shareholders as much as possible.
- Preserve the same percentages of ownership as much as possible.
- Require departing employees to sell their stock so that the stock remains with those who have the greatest incentive.
- Require the corporation to buy a shareholder’s shares upon the death or disability of the shareholder.
- Give one or more shareholders an option to force the corporation to purchase their shares in certain situations.