Shareholder Agreements

Forming a professional dental corporation marks a significant milestone. It creates a powerful legal structure for your practice, but it also introduces a new layer of complexity.

The corporation itself is an entity, and its governance is not automatic. The document that directs its future, protects its owners, and preserves its value is a custom-tailored Shareholder Agreement.

It establishes the rights, responsibilities, and restrictions that come with ownership. A strong agreement acts as a private set of laws for your corporation, providing a clear path forward for critical decisions and unforeseen events.

Key takeaways about your shareholder agreements

A shareholder agreement provides essential control over who can own shares in your dental corporation, preventing unwanted partners from entering the business through events like divorce or inheritance.
The document outlines a clear, predetermined process for valuing and purchasing a shareholder's stock upon retirement, disability, death, or departure, protecting the financial stability of the practice.
This agreement establishes rules for corporate governance and decision-making, helping to prevent deadlocks and disputes between shareholders over the management of the practice.
For dental practices in California, a shareholder agreement must operate in concert with state laws, such as the Moscone-Knox Professional Corporation Act, to ensure full compliance.

Why Choose Wood & Delgado for Your Shareholder Agreement?

Wood & Delgado drafts shareholder agreements exclusively for dental professionals. Our deep industry focus means we build documents that address the specific challenges of a dental corporation, from regulatory compliance to the nuances of practice valuation.

We create a legal framework that aligns with your operational and financial goals.

Our attorneys construct precise terms that govern share transfers, establish buy-sell provisions, and define shareholder voting rights.

We anticipate the transitions and disputes common to dental practices and engineer solutions directly into your agreement. This proactive approach safeguards your ownership interest and the long-term health of your corporation.