Shareholders' Agreement
(NJ Corporation)

Summary

This template is a Shareholders' Agreement for execution among shareholders of a corporation which specifies the manner in which the corporation is to be governed. This template, which may be adopted by a New Jersey corporation, may be tailored to suit each transaction. This template includes practical guidance, drafting notes, and an optional clause. Shareholders' agreements are commonly entered into among shareholders of privately held companies, where the shareholder base is small, and each shareholder may be more interested or involved in the management of the corporation. Further, shareholders' agreements for S corporations play an important role in safeguarding S corporation status in the event of shareholder retirement, termination of a shareholder's employment, or the death, disability, divorce, or other creditor issues of a shareholder. For additional guidance on shareholders of a New Jersey corporation, see Corporation Stock and Stockholders (NJ Corporation).