Problem: The shareholders of a corporation or the members of a limited liability company (LLC) want to be sure that they can sell their shares or membership units back to the company for a reasonable value when they retire. They also want to know that their partners cannot transfer their equity interests freely without the approval of other shareholders, members or partners.
The company owners also need to be clear about how they will make decisions and how they will resolve potential deadlocks (when there is an even number of owners).
The attorneys at Cooper Law LLC would explain various alternatives for buy-sell, transfer restrictions and management provisions to our client’s principals.
Once these are understood and the client’s principals have made appropriate choices, we would draft the appropriate documentation for these provisions. For corporations, these are usually drafted in a separate shareholders’ agreement. For LLCs, these provisions would be incorporated into the LLC Operating Agreement. They can also be drafted into stock or other equity purchase agreements.