Northbrook Shareholder and Partnership Lawyers
Helping Clients throughout Chicago with Shareholder and Partnership Agreements
Shareholder agreements, partnership agreements, and LLC operating agreements are essential to any well-managed business organization. These agreements govern crucial aspects of the business, including ownership, management, and governance.
The Chicago shareholder and partnership attorneys at The Wochner Law Firm focus on helping small businesses with all of their legal needs, including the preparation of shareholder and partnership agreements. Contact our office today at (847) 272-7360 to schedule a free consultation with one of our knowledgeable Illinois shareholder and partnership attorneys.
Purpose of Shareholder Agreement
A shareholders’ agreement achieves a number of purposes and objectives. For instance, a shareholders’ agreement can be used:
- To preserve a shareholder’s proportionate interest
- To control voting rights among the shareholders
- To govern management issues of the corporation
- To provide terms under which the corporation and/or the remaining shareholders may acquire a shareholder’s shares under certain circumstances, such as death, disability, divorce, or termination of employment
- To provide liquidity and to stipulate an exit strategy
- To determine management and other governance arrangements
- To set forth a business succession plan
- To resolve disputes or management deadlocks
- To provide for dividends and other distributions
- To grant minority shareholders various rights to participate in any sale of shares by another shareholder
- To grant a majority shareholder the right to compel minority shareholders to participate in share sale transactions that the majority negotiates
- To assure preservation of S status if the corporation has made such an election
Buy/sell agreements are used to restrict the transfer of shareholder interests upon certain triggering events, such as death, termination of employment, or divorce. Buy/sell agreements are often used in family businesses in order to preserve the exclusive family ownership of the company. At The Wochner Law Firm, our experienced Chicago shareholder attorneys also help clients prepare buy/sell agreements as they are essential to most estate plans and business success plans.
Partnership agreements and LLC operating agreements generally cover the same issues as shareholder agreements, but Illinois law provides several rules about the things that can and cannot be stipulated in a partnership or operating agreement. Accordingly, it is important to seek the advice and guidance of an experienced Illinois partnership attorney when preparing a partnership agreement or LLC operating agreement.
Legal Advice You Can Trust
At The Wochner Law Firm, our Illinois partnership lawyers focus on helping small businesses with all of their legal needs, including business organization, partnership agreements, and estate planning needs. Our offices are conveniently located along the Edens Expressway in Northbrook, Illinois.
Contact The Wochner Law Firm at (847) 272-7360 to schedule a free consultation with one of our experienced Chicago shareholder and partnership attorneys to learn more about how we can help you prepare an effective shareholder or partnership agreement.