Bylaws v. Shareholder Agreement
If you own a corporation, you should have Bylaws and a Shareholder Agreement.
Having these documents provide an outline of how your corporation will operate, allowing you to be spared from future headaches and points of conflict.
What are Bylaws?
Bylaws establish how the corporation will be governed. Bylaws are required by Florida law.
- Requirements for the annual meeting;
- Outline how meeting minutes should be recorded;
- Describe how officers will be appointed; and
- Detail voting procedures for shareholders.
What is a Shareholder Agreement?
The Shareholder Agreement outlines the roles and responsibilities of each shareholder. It also includes:
- A succession plan which would allow the company to survive if a shareholder experiences a major life event like divorce, bankruptcy, death, etc.; and
- How the shareholders will be involved in the operation of the business.
Great News: You can customize the shareholder agreement to fit your needs as a business.
Should there ever be a conflict between the Bylaws and the Shareholder Agreement, the Shareholder Agreement should take priority over the Bylaws. However, the Bylaws should be amended to address the conflict for the future.
These documents are vital for the success of your business. They afford you peace of mind so that you can focus on more important issues such as growth and goal setting.
Contact Wheeler Legal, PLLC if you are in need of Bylaws and a Shareholder Agreement for your corporation. We also can provide a thorough review of these documents to ensure that they fit your corporation in its present form. Schedule a consultation online or by calling (321) 209-5995.
Disclaimer: The information contained in the above post is provided for general informational purposes only, and does not constitute legal advice, nor is it intended to create an attorney-client relationship. This firm aims to provide quality information, but we make no claims, promises, or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this post. Nothing provided in these blog posts should be used as a substitute for the advice of competent counsel.