‘The job isn’t done until the paperwork is complete’, a popular axiom used especially in business. It identifies with the requirement that every corporate entity maintain its legal status and understanding between all investors and the management team. These understandings are the essence of the “formation” of the corporate entity. Failure to do the paperwork can create legal snafus such as the loss of corporate protection for both officers and owners of the company
A stockholders agreement is a legal arrangement among stockholders (shareholders) of a corporate form of entity restricting various powers normally granted to shareholders. It is a very common instrument of control in a small business operation especially family owned businesses.