A Stockholders Agreement (STA) is a contract between the shareholders of a company that outlines their rights, obligations, and restrictions related to their ownership of company stock. The agreement sets out the rules governing the relationship between the shareholders and the company, including voting rights, restrictions on the transfer of shares, and how to handle disputes among shareholders.
A STA typically includes provisions related to:
- Shareholder rights and obligations
- Voting rights and procedures
- Restrictions on the transfer of shares
- Procedures for selling shares
- How to handle disputes among shareholders
- Restrictions on the company’s activities and transactions
- Shareholder representation on the board of directors
- Confidentiality and non-compete provisions
A STA is an important document for any company with multiple shareholders, as it helps ensure that all parties are on the same page and can work together effectively. The agreement can be customized to fit the specific needs of the company and its shareholders.