buy-sell provisions

Buy-sell provisions are contract terms in a business agreement that set the rules for how an owner’s interest can be sold or transferred, often when someone wants to exit, dies, becomes disabled, or has a dispute. They typically specify who can buy the interest, how the price is determined, and the payment terms to keep ownership transitions orderly.

How to Draft an Operating Agreement for a New California LLC with Unequal Member Contributions and Profit Splits

Business Formation & Governance / Jack Gilbert

In California, you can draft an LLC operating agreement that allocates profits and losses unequally—even if members contribute different amounts—so long as the agreement is clear and consistent with California’s Revised Uniform Limited Liability Company Act (RULLCA). New LLC owners often discover that “equal split” default rules don’t fit real-world deals involving cash, services, or […]

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What is a shareholder agreement?

A shareholder agreement is a private contract among a company’s shareholders (and often the company) that sets the rules for ownership, voting, and share transfers. It complements the company’s articles/bylaws by clarifying rights, obligations, and what happens during disputes or major events like funding rounds or exits. This article explains what a shareholder agreement includes,