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Home Resources Glossary Shareholders’ Agreement

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Shareholders’ Agreement

An agreement by and among the shareholders (owners) of a company pertaining to the governance of the company, the rights of the shareholders, the duties of the shareholders, and restrictions on the transfer of the shareholders’ equity interests.

Related Terms

S Corporation

Short for “Subchapter S Corporation”. A state-incorporated business that elects special tax treatment. See Also C Corporation, entity. Tips An S Corporation does not pay income taxes. Instead, its owners...

Sales Tax

A tax collected on the sale of goods or services. Tips If the owner of a business is required to have a sales tax permit, then sales tax is charged...

SBA 7(a) Loan

A loan offered through the Small Business Administration. See Also Small Business Administration. Tips The SBA 7(a) loan typically requires a 10% to 20% down payment, and the balance is...

Scalable

The ability to quickly grow a company without requiring a proportional additional investment in the business to support the growth. Example Most software and tech businesses, such as Uber and...

Secured Party

An individual or entity to whom a debtor has made a promise to pay under the terms of a promissory note and security agreement. Related Resources Small Business Acquisition Financing...

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Shareholders’ Agreement

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Related Terms

S Corporation

Sales Tax

SBA 7(a) Loan

Scalable

Secured Party

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