The Importance of Owners' Agreements

Although not required, it is extremely valuable for Owners' Agreements, such as Shareholder Agreements, LLC Agreements and Joint Venture Agreements to be in writing.  In closely held businesses, a shareholder dispute is what typically causes a Company to crumble. Shareholders and partners of privately held companies should protect themselves during the formation process and reduce oral agreements to writing.  Certain provisions to include provide for buy-sell methods, decision making ability, and deadlock and dispute resolution procedures.  Making sure that these types of clauses are  in writing before a problem arises could be the key to a Company's ultimate success.