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 business strategy, an update to the shareholder agreement may be necessary to incorporate new investment terms or strategies. A CEO might declare, 'This update to our shareholder agreement includes terms for future capital raises and profit distributions.'

Practice Scenarios

Consulting

Scenario:

Given your global expansion plans, the current governance structure may need to be reviewed and optimized.

Response:

Absolutely, introducing a shareholder agreement update can be part of the optimization strategy for better governance.

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.