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one shareholder fails to do certain things if they bdocHub a term of the shareholders agreement if they are fired as an employee or as a contractor of the company if they fail to fulfill on certain Milestones then they can be considered to be in default of the shareholders agreement and if theyre in default then that can trigger certain remedies one of those remedies could be a mandatory buyout at a discount it might force that shareholder to sell his or her shares at a 85% or a 90% valuation and the shareholders agreement also speaks to how to Value the shares theres a mechanism theres a process for determining what the fair market value of the shares is going to be all these things are incredibly useful because in a time of dispute its very difficult to come to an agreement on who should sell what shares to whom and what theyre actually going to be worth
