A comprehensive shareholders agreement is essential for business owners who want to protect their financial interests. The document outlines how a company’s executives and shareholders interact and settle disagreements. Drafting this agreement is complicated, considering how much is at stake. It is worth your time to hire a corporate attorney to oversee the process. Below, Luke A. Weiland Attorney at Law in Wisconsin Rapids, WI, shares three reasons you should work with a legal expert when drafting a shareholders agreement.

1. Protect Your Best Interests

In addition to establishing the relationship between the shareholders and company, an official agreement also sets forth the relationships between the majority and minority parties, as well as between the board and the shareholders. As the saying goes, “there are no friends in business,” and even if you are starting a company with people you know and trust, it is essential that you draft an agreement that protects your financial interests in the event of a dispute. A corporate attorney can review the document to ensure you have achieved this goal.

2. Address the Difficult Questions

An experienced corporate attorney has likely seen it all, so he can advise on what kinds of issues and potential scenarios you need to address in the agreement. Although no one expects to be involved in a contentious dispute, it’s always best to have a plan of action, so you know how to respond.  

3. Strike a Fair Balance

A corporate attorney has experience devising strategies and arrangements that find the balance between granting power for majority shareholders and providing protection for those in the minority. Your lawyer will ensure you reasonably address all relevant issues in the consent matters clause, including those involving litigation, mergers, and financing.

If you need to draft a shareholders agreement to protect and grow your company, turn to the business law team at Luke A. Weiland Attorney at Law in Wisconsin Rapids. To learn more about the firm’s broad range of practice areas, visit their website. Call (715) 422-6808 to schedule a consultation with a corporate attorney today.