The Benefits of a Shareholders Agreement

The shareholder agreement also defines the roles, responsibilities and functions of each of the shareholders therefore preventing a future dispute. It can also promote a harmonious relationship between the shareholders. Additional rights and restrictions on some of the authorities with shareholders that have less shares can also be decided with the agreement. Once the agreement has been decided, it becomes final when it becomes a written document in a form of contract.

Benefits of having a shareholder agreement would include the following:

· You will be able to control the ownership of the shares by authorizing the transfers in the some circumstances like death, mental disability or bankruptcy.

· You can decide on how the resolution of problems will go.

· You can provide protection to shareholders that own less than fifty percent or the minority holders of the company.

· You can control the removal and hiring or employing the directors and the terms of their employment.

· The financial aspect of the company can also be decided pre-hand.

· The rules on payments and/or dividends as well as the other benefits of the directors can be set out clearly.

· You can also enforce some restrictions regarding the company’s rival.

· The shareholders can also be prevented from poaching the staffs or the customers.

Not all of these benefits can actually be achieved by all the shareholders; this will depend in your position in the shares. There are no legal requirements when you wish to enter a shareholders agreement but the contents of the agreement must be in line with governing laws that have already been established. The governing laws might also vary according to your location.

A shareholder agreement can be made anytime -whenever the shareholders believe that it becomes necessary for them to do. But we must remember that the benefits will be available for the shareholders to have when they already decide to enter into an agreement. Also, problems or conflicts might arise within the shareholders anytime. So if a shareholders agreement is already agreed on before those conflicts arise, it would be much better.

An Essential Checklist When Looking for Rubber Products Manufacturers

Do they have references?
When looking for rubber products manufacturers, it is essential that you deal with the one that really offers good business experience to their clients. It would be best if they have references for you to contact. These references are the list of people that the company has worked with. Maybe they have worked with a popular brand before. You can check and verify this and this can help you in your decision making process. If they really take care of their clients, these manufacturers will not be afraid and embarrassed to cite some of the references that they have.

How long are they in the business
Longevity is the mark of a solid business. Think about it, if they are still very active even during these harsh economic conditions, it means that they have a solid business, plenty of clients and good standing in the industry. It is important to check how long they have been working and if the operation has improved in the last few years. It would be best if the company you are working with is established more than 5 years or so already. It only shows that they are old enough in the industry. It is critical that you ask these details or check on their profile.

Ethical standards
It is good enough that they have been working for several years already. However, it is also necessary to understand their business ethics. As much as you want the best service, and receive the expected number of rubber products on time, are they well manned? Do they offer the ample minimum wage required by the jurisdiction? Were there any complaints regarding bad or questionable business practices. It is important that you always consider the ethical practices of the company as it will really give you peace of mind that you are supporting a reliable company.

Quality of products
Of course the biggest question now is on quality. Do they offer the best possible quality? You need to choose among numerous rubber products manufacturers in order to make a good decision. You can check business directories so that you can find their profiles and see their credentials. Get some samples from each company if possible. As much as you want cheap options, you also want quality. Always strike a balance between these aspects and consider the above factors.