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Shareholder Support Agreement for the United States

Shareholder Support Agreement Template for United States

A Shareholder Support Agreement is a legally binding document used in the United States that establishes commitments from shareholders to support specific corporate actions, typically in the context of mergers, acquisitions, or other significant corporate transactions. The agreement outlines voting commitments, transfer restrictions, and other obligations of the supporting shareholders, ensuring stability and predictability in corporate governance matters. It is subject to federal securities laws, state corporate laws, and potentially stock exchange regulations.

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What is a Shareholder Support Agreement?

The Shareholder Support Agreement serves as a critical tool in corporate transactions, particularly in the United States, where shareholder approval is often required for significant corporate actions. This agreement is commonly used in merger and acquisition scenarios, corporate restructurings, or other major corporate events where securing shareholder support is essential. It typically includes detailed provisions about voting commitments, share transfer restrictions, and termination rights. The agreement helps create certainty in corporate transactions by legally binding key shareholders to support specific actions, subject to fiduciary duties and applicable securities laws.

What sections should be included in a Shareholder Support Agreement?

1. Parties: Identification of the parties entering into the agreement, including the supporting shareholders and the company

2. Background: Context of the agreement, including the proposed transaction or circumstances requiring shareholder support

3. Definitions: Key terms used throughout the agreement, including specific transaction-related definitions

4. Voting Commitments: Core obligations regarding voting of shares, including specific matters requiring support

5. Transfer Restrictions: Limitations on share transfers during the support period and any exceptions

6. Term and Termination: Duration of agreement and conditions for termination, including transaction completion or failure

7. Representations and Warranties: Standard assurances from each party regarding authority, ownership, and compliance

8. Governing Law: Applicable jurisdiction and choice of law provisions

What sections are optional to include in a Shareholder Support Agreement?

1. Standstill Provisions: Restrictions on additional share purchases or hostile actions during the agreement period

2. Proxy Provisions: Authorization to vote shares and appointment of proxy holders

3. Non-Solicitation: Prohibition on soliciting or encouraging competing offers or proposals

What schedules should be included in a Shareholder Support Agreement?

1. Schedule of Shareholders: List of participating shareholders and their respective shareholdings

2. Form of Proxy: Standard form for proxy voting arrangements if required

3. Permitted Transfers: List of exempted transfer scenarios and permitted transferees

4. Shareholder Information: Detailed information about shareholdings, voting rights, and any encumbrances

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Cost

Free to use
Clauses

























Industries

Securities Act of 1933: Federal law requiring registration of securities offerings and detailed financial disclosures to protect investors

Securities Exchange Act of 1934: Federal law governing secondary market trading and establishing the SEC, including requirements for ongoing reporting and disclosure

Williams Act: Federal legislation governing tender offers and shareholder rights, including disclosure requirements for acquisitions of significant stock holdings

Delaware General Corporation Law: Primary state corporate law framework if company is Delaware-incorporated, governing corporate structure, shareholder rights, and governance

Blue Sky Laws: State-specific securities laws regulating the offering and sale of securities to protect investors from fraudulent activities

NYSE/NASDAQ Listing Rules: Stock exchange requirements governing listed companies, including corporate governance and shareholder rights provisions

Sarbanes-Oxley Act 2002: Federal law establishing enhanced corporate governance standards, internal controls, and financial disclosure requirements

Dodd-Frank Act: Federal legislation implementing financial reforms including corporate governance, executive compensation, and shareholder rights provisions

Hart-Scott-Rodino Act: Federal antitrust law requiring notification and review of large mergers and acquisitions, including significant stock acquisitions

State Contract Laws: State-specific laws governing contract formation, enforcement, and interpretation, including Statute of Frauds requirements

Articles of Incorporation: Company's foundational document establishing basic corporate structure and shareholder rights

Corporate Bylaws: Internal rules governing company operations, shareholder meetings, and voting procedures

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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