shareholder-agreement-update

Vocabulary Word

Definition

When you hear 'shareholder-agreement-update,' it means the formal contract between the shareholders of a company is changed. It's like updating the handbook or instruction manual for a group project.

Examples in Different Contexts

In corporate law, updating a shareholder agreement is crucial when changes in company structure or shareholder rights occur. A corporate lawyer might advise, 'It's time to update our shareholder agreement to reflect the new ownership structure and voting rights.'

Practice Scenarios

Legal

Scenario:

The laws governing corporate entities have been revised, and companies need to ensure their practices and policies align with these new regulations.

Response:

In light of this, let's engage our legal counsel and start a shareholder agreement update to remain in accordance with the updated laws.

Tech

Scenario:

With the new funding round, our equity structure has transformed considerably. We need to make sure our shareholder agreement refines this.

Response:

Yes, we should keep shareholders informed and initiate a shareholder agreement update to reflect these changes.