Drafting Shareholder Agreements

Drafting Air-Tight Shareholder Agreements: Michigan Court of Appeals Exposes Potential Loophole

January 2004
By Daniel D. Quick and Jeffrey R. Dobson, Jr.
Discusses how shareholder agreements are often employed in closely held corporations as a means to fix the relationship of the shareholders and to foresee and prevent disputes over the operation of the business. Michigan attorneys must now be sure to draft shareholder agreements as inclusively as possible to avoid hidden consideration controversies or they must be sure to establish actual evidence of hidden consideration before proceeding to trial on such a claim.
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