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When shareholders' agreement is enforceable
When shareholders' agreement is enforceable - Trends
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Shareholders' agreements often include broad arbitration clauses mandating arbitration of all disputes arising out of or relating to the agreement. Courts routinely enforce such clauses when a non-compliant shareholder files a court petition for judicial dissolution of the corporation. (For more on general principles concerning arbitration of dissolution disputes, read here .) In a recently decided dissolution case called Matter of Rosenberg (ARS Financial Services, Inc.) , 2010 NY Slip Op 30616(U) (Sup Ct Nassau County Mar. 17, 2010) , the shareholders' agreement ...
(a) One or more natural persons, partnerships, associations or corporations, domestic or foreign, may form a corporation under this division by executing and filing articles of incorporation. (b) If initial directors are named in the articles, each director named in the articles shall sign and acknowledge the articles; if initial directors are not named in the articles, the articles shall be signed by one or more persons described in subdivision (a) who thereupon are the incorporators of the corporation. (c) The corporate existence begins upon the filing of the articles and continues ... Read More
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WHEN SHAREHOLDERS' AGREEMENT IS ENFORCEABLE
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