2010 New Year’s Resolution for Small Businesses

A new year has begun, and many small businesses will fail to have their Annual Meeting. At that Annual Meeting, some Operating Agreements require that the shareholders set the stock price in the event a shareholder wants to leave or be bought out. More importantly, if litigation ensues between the shareholders, setting a stock price can avoid hundreds of thousands of dollars in litigation costs over stock valuation.

It is a good time to review your Operating Agreement and other documents to make sure that they are drafted in such a way that all shareholders and officers understand the documents. A quick review of these critical documents by your attorney now may save you hundreds of thousands in litigation costs later. Remember the old saying, “Pay me now, or pay me later?» A good New Year’s Resolution is to contact your corporate attorney and discuss these issues, and do your 2010 Corporate Minutes and a review of key corporate documents.

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