Broker Shareholders Sample Clauses
The 'Broker Shareholders' clause defines the rights, obligations, or status of shareholders who are also brokers within a company or transaction. Typically, this clause outlines how broker shareholders may participate in decision-making, receive distributions, or are subject to specific restrictions due to their dual role as both brokers and equity holders. For example, it may address conflicts of interest, voting rights, or limitations on share transfers. The core function of this clause is to manage potential conflicts and ensure transparency and fairness in dealings involving shareholders who have brokerage responsibilities.
Broker Shareholders. (a) Shareholder In order to become a Brokerage Shareholder, one must be a Brokerage. Any Brokerage firms desiring to become a Shareholder must be actively engaged in the real estate brokerage business, and as a condition of remaining a Shareholder, must have entered into the MLS Service and System at least one (1) property for sale or rent listed with the Broker Shareholder during each calculation period as set forth in Section 6.5.3(b) below, unless excused by the Board of Managers.