KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and white list ken@kirschenbaumesq.com
******************************
What info you need for shareholders agreement / sign up for next webinar
October 28, 2021
*********************
Next Webinar:
Title: Borrowing and finance option: DealerAlly Program
When: November 9, 2021 12 pm ET
Presented by: Tim Meekin, President of DealerAlly, LLC
Hosted by: Ken Kirschenbaum,Esq
Who should attend: alarm owners, CEOs, CFOs, Sales Managers
Register here: https://attendee.gotowebinar.com/register/8348669174055938571
*********************
What info you need for shareholders agreement
*********************
If you own your business entity, either corporation or limited liability company, yourself, you don’t need a shareholder agreement. It takes two to agree to a contract, which is what a shareholders agreement is, and with no one else owning an interest you have no one to contract with. But, if there are more than one shareholder you do need a shareholders agreement.
A Limited Liability Company, LLC, by the way must have an Operating Agreement. The “kits” come with a pro-forma Operating Agreement which a single owner LLC can use. But if there is more than one “member” to the LLC you need to give the same thought to issues as if you were a corporation needing a shareholders agreement.
I was asked to draft a shareholders agreement for a corporation and wound up drafting a quick questionnaire for the client that I thought I would share here. The following are topics that should be addressed and will probably have to be discussed, among the shareholders and the lawyer and maybe accountant.
If you have more than one owner you need an agreement among the owners. K&K will prepare the agreement after consult with you. It’s important to have a lawyer familiar with the alarm industry when preparing these agreements. If you’re reading this I guess you know where to find such an attorney. Give me a call or email.
******
Checklist:
1 Name and address of the corporation and state of incorporation
2 Names and addresses of the stockholders
3 Percentage of shares each will own
4. If any shareholder has contributed any capital or paid for their shares [that would include any accounts you transferred into the corp]
5 who owns the stock now and how many shares
6 type of alarm business or other business conducted
7 number of accounts - you can get valuation at https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth
8 titles each will have - president etc
9 whether full time work is required, or not
10 respective compensation package
11 what happens if shareholder gets disabled
12 what happens if shareholder dies
13 what happens if shareholder wants to stop working - does he have to sell too
14 what happens if shareholder wants to sell during his lifetime
15 what is buy out formula in event of disability, death, wanting to sell during lifetime
16 what is payout schedule
17 can shareholder be required to give up employment with corp and be required to sell shares, and at what price and payout
18 what is dissolution procedure and who is in charge
********************
To order up to date Standard Form Alarm / Security / Fire and related Agreements, click here: www.alarmcontracts.com
*************************
CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - New benefit just added - worth $75 per month - legal form letter sent to delinquent account on Kirschenbaum letterhead
You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
***********************
NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles
***********************
THE ALARM EXCHANGE
This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc.
There is no charge to post a listing here.Include your contact information, phone, email and web site. If you would like to submit a post, please send an email to ken@kirschenbaumesq.com. To create a reciprocal link to our website, click here.
************************************************
Getting on our Email List / Email Articles archived:
Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com
**************************
Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com
|
