Shareholder Agreements & Statutes

Shareholder agreements and statutes are foundational documents that define a company’s structure, governance, and operational rules. They set out how the company is governed, how decisions are made, and the rights and responsibilities of shareholders or stakeholders. For companies adopting steward-ownership, these documents are where the principles of steward-ownership are truly anchored. They set out the essential clauses that regulate voting and economic rights, cap profit extraction, prevent the sale of the company for personal gain, and define who qualifies as mission-aligned stewards. These legal frameworks ensure that the company’s mission and independence are safeguarded for the long term.

When a company opts for equity investments, shareholder agreements and statutes also include provisions that define the terms and conditions for raising capital. These terms outline the relationship between the company and its investors or lenders, specifying how funds are provided, the rights and obligations of each party, and the mechanisms for repayment or return on investment.

In this chapter, we present examples of shareholder agreements and statutes from steward-owned companies. These examples illustrate the clauses that set them apart from traditional shareholder agreements. They are intended as inspiration and a starting point for your journey, but should not be viewed as complete or final solutions. Each company’s situation is unique, so these agreements should be carefully tailored with the help of legal, tax, and financial advisors to ensure they meet your specific needs and comply with applicable laws and regulations.