Often shareholders in closely held corporations want to formally set out their rights and responsibilities with respect to each other that are not already included in the incorporating documents.To best achieve this they have the following document prepared on their behalf:
A)a franchise agreement.
B)a partnership agreement.
C)a prospectus.
D)a receivership agreement.
E)a shareholders' agreement.

Question

Quizplus · Accepted Answer

Shareholders in closely held corporations often use a shareholders' agreement to set out their rights and responsibilities with respect to each other that are not already included in the incorporating documents. The agreement addresses issues such as voting rights, transfer of shares, and dispute resolution.

Often Shareholders in Closely Held Corporations Want to Formally Set