by Nik Erman | Mar 24, 2025 | Business, Contracts, Featured, Law
What is a Profit Reinvestment Clause? This clause specifies: How much profit is reinvested into the business (e.g., 60% reinvested, 40% paid as dividends). What the reinvested funds can be spent on (e.g., R&D, equipment, hiring). How decisions about reinvestment...
by Nik Erman | Feb 24, 2025 | Business, Contracts, Featured, Law
One of the most overlooked yet critical aspects of a shareholders agreement is the inclusion of Good Leaver / Bad Leaver provisions . These clauses address what happens when a shareholder leaves the company—whether in good terms or in bad terms —and how their shares...
by Nik Erman | Feb 17, 2025 | Business, Contracts, Featured, Law
In corporate governance, power dynamics between majority and minority shareholders can sometimes lead to unexpected challenges. While the majority typically holds control over decision-making, there are scenarios where a minority shareholder—or group of minority...
by Nik Erman | Jan 30, 2025 | Business, Contracts, Featured, Law
A Mudarabah agreement is a form of Islamic finance partnership where one party provides capital (the Rabb-ul-Mal or investor) and the other party provides expertise and management (the Mudarib or entrepreneur). The profits are shared according to a pre-agreed ratio,...
by Nik Erman | Jan 27, 2025 | Business, Contracts, Featured, Law
Governance and decision-making are critical components of a Shareholders Agreement, especially when you are a minority shareholder investing a significant amount of money. These provisions ensure that you have a say in the company’s direction and protect your...
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