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LLC Ownership Percentage Agreement
"I need an LLC Ownership Percentage Agreement for a tech startup in Karachi with three founding members contributing different amounts of initial capital, where one member will have majority ownership (51%) and management rights, while the other two will split the remaining ownership based on their capital contributions."
1. Parties: Identifies and provides details of all members/owners entering into the agreement
2. Background: Outlines the context of the agreement, including the LLC's formation and purpose
3. Definitions: Defines key terms used throughout the agreement
4. Ownership Structure: Details the percentage ownership of each member and capital contributions
5. Rights and Obligations: Specifies the rights and responsibilities of each member based on their ownership percentage
6. Management and Voting: Describes how decisions will be made and voting rights based on ownership percentages
7. Profit and Loss Distribution: Explains how profits and losses will be allocated among members
8. Transfer Restrictions: Sets forth limitations on transferring ownership interests
9. Meetings and Records: Establishes procedures for member meetings and maintaining company records
10. Dissolution and Exit: Outlines procedures for company dissolution and member exit scenarios
11. Governing Law: Specifies that Pakistani law governs the agreement
12. Dispute Resolution: Details the process for resolving disputes between members
13. Notices: Specifies how formal communications between parties should be made
14. General Provisions: Includes standard boilerplate clauses such as severability and entire agreement
1. Tag-Along Rights: Gives minority members the right to join in when a majority member sells their stake
2. Drag-Along Rights: Allows majority members to force minority members to join in the sale of the company
3. Right of First Refusal: Gives existing members priority in purchasing shares from departing members
4. Anti-Dilution Provisions: Protects members from ownership dilution in case of new share issuance
5. Deadlock Resolution: Provides mechanisms for resolving situations where members cannot reach agreement
6. Non-Compete Clause: Restricts members from engaging in competing businesses
7. Intellectual Property Rights: Addresses ownership and use of company intellectual property
8. Additional Capital Contributions: Procedures for requesting and making additional capital contributions
1. Schedule A - Member Information: Detailed information about each member including contact details and initial capital contributions
2. Schedule B - Ownership Percentages: Current ownership percentages and number of shares held by each member
3. Schedule C - Valuation Methodology: Agreed method for valuing ownership interests for various purposes
4. Schedule D - Initial Assets: List of assets initially contributed to the LLC
5. Appendix 1 - Company Formation Documents: Copies of LLC registration and other formation documents
6. Appendix 2 - Business Plan: Initial business plan and financial projections
7. Appendix 3 - Special Resolutions: Copy of any special resolutions passed by members
8. Appendix 4 - Specimen Signatures: Authenticated signatures of all members
Authors
Technology
Manufacturing
Professional Services
Retail
Real Estate
Healthcare
Education
Construction
Financial Services
Hospitality
Agriculture
Logistics
Media and Entertainment
Energy
Legal
Corporate Governance
Executive Leadership
Finance
Compliance
Corporate Strategy
Risk Management
Business Development
Company Secretariat
Investment
CEO
Managing Director
Company Secretary
Chief Legal Officer
Business Development Manager
Chief Financial Officer
Corporate Lawyer
Compliance Officer
Board Member
Investment Manager
Partner
Shareholder
Business Owner
Corporate Governance Officer
Risk Manager
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