Internal affairs agreements are contracts that set forth the rights and obligations of the company, its owners and its managers. These documents include the shareholders’ agreement for corporations, the operating agreement (New York) or limited liability company agreement (Delaware) for LLCs, and the partnership agreement for all forms of partnerships. Founders agreements can also be considered an internal affairs agreement.
Internal affairs agreements generally have two characteristics. Firstly, they specify how a company is to be run, such as the relative responsibilities and authorized acts of managers and owners, limit the forms of business a company can operate, and the procedures for making company decisions. Secondly, they aim to retain key individuals in the company, prevent unwanted individuals from becoming part of the company.
If your business needs a customized internal affairs agreement, our law firm can prepare one for you. Contact us to discuss the needs of your company.