79463213.1-671.1Virginia Decodedhttps://vacode.org2016CorporationsVirginia Stock Corporation ActShareholdersShareholder agreements1990, c. 337; 1997, c. 226; 2005, c. 765; 2015, c. 611.Boyd, Payne, Gates v. Payne, Gates, FarthingRecord No. 911939422 S.E.2d 7841992-11-06https://www.courtlistener.com/opinion/1325793/boyd-payne-gates-v-payne-gates-farthing/ . . . General Assembly's 1990 enactment of Code § 13.1-671.1. . . . <abbr title="Supreme Court of Virginia">SCV</abbr>Barber v. VistaRMS, Inc.052094634 S.E.2d 7062006-09-15https://www.courtlistener.com/opinion/1058795/barber-v-vistarms-inc/ . . . for a shareholder agreement set forth in Code § 13.1-671.1.[5] As a consequence, Barber contends, . . . <abbr title="Supreme Court of Virginia">SCV</abbr>http://law.lis.virginia.gov/vacode/13.1-671.1/13.1-648Shares without certificates/13.1-648//13.1-671.1/13.1/9/8/13.1-671.113.1-55313.1-67313.1-68813.1-693An agreement among the shareholders of a corporation that complies with this section is effective among the shareholders and the corporation, even though it is inconsistent with one or more other provisions of this chapter in that it:sectionAA1 Eliminates the board of directors or, subject to the requirements of subsection D of § 13.1-647 and subsection A of § 13.1-693, one or more officers or restricts the discretion or powers of the board of directors or one or more officers;sectionA1A12 Governs the authorization or making of distributions, whether or not in proportion to ownership of shares, subject to the limitations in § 13.1-653;sectionA2A22 Establishes who shall be directors or officers of the corporation, or their terms of office or manner of selection or removal;sectionA3A32 Governs, in general or in regard to specific matters, the exercise or division of voting power by or between the shareholders and directors or by or among any of them, including use of weighted voting rights or director proxies;sectionA4A42 Establishes the terms and conditions of any agreement for the transfer or use of property or the provision of services between the corporation and any shareholder, director, officer or employee of the corporation, or among any of them;sectionA5A52 Transfers to one or more shareholders or other persons all or part of the authority to exercise the corporate powers or to manage the business and affairs of the corporation, including the resolution of any issue about which there exists a deadlock among directors or shareholders;sectionA6A62 Requires dissolution of the corporation at the request of one or more of the shareholders or upon the occurrence of a specified event or contingency; orsectionA7A72 Otherwise governs the exercise of the corporate powers or the management of the business and affairs of the corporation or the relationship among the shareholders, the directors and the corporation, or among any of them, and is not contrary to public policy.sectionA8A82An agreement authorized by this section shall be:sectionBB1 a. Set forth in the articles of incorporation or bylaws and approved by all persons who are shareholders at the time of the agreement; or
sectionB1B12 Set forth in a written agreement that is signed by all persons who are shareholders at the time of the agreement; andsectionB1bB1b3 Subject to amendment only by all persons who are shareholders at the time of the amendment, unless the agreement provides otherwise.sectionB2B22The existence of an agreement authorized by this section shall be noted conspicuously on the front or back of each certificate for outstanding shares or on the information statement required by subsection B of § 13.1-648. If at the time of the agreement the corporation has shares outstanding represented by certificates, the corporation shall recall the outstanding certificates and issue substitute certificates that comply with this subsection. The failure to note the existence of the agreement on the certificate or information statement shall not affect the validity of the agreement or any action taken pursuant to it. Any purchaser of shares who, at the time of purchase, did not have knowledge of the existence of the agreement shall be entitled to rescission of the purchase. A purchaser shall be deemed to have knowledge of the existence of the agreement if its existence is noted on the certificate or information statement for the shares in compliance with this subsection and, if the shares are not represented by a certificate, the information statement is delivered to the purchaser at or prior to the time of purchase of the shares. An action to enforce the right of rescission authorized by this subsection must be commenced within the earlier of 90 days after discovery of the existence of the agreement or two years after the time of purchase of the shares.sectionCC1An agreement authorized by this section that limits the discretion or powers of the board of directors shall relieve the directors of, and impose upon the person or persons in whom such discretion or powers are vested, liability for acts or omissions imposed by law on directors to the extent that the discretion or powers of the directors are limited by the agreement.sectionEE1The existence or performance of an agreement authorized by this section shall not be a ground for imposing personal liability on any shareholder for the acts or debts of the corporation even if the agreement or its performance treats the corporation as if it were a partnership or results in failure to observe the corporate formalities otherwise applicable to the matters governed by the agreement.sectionFF1Incorporators or subscribers for shares may act as shareholders with respect to an agreement authorized by this section if no shares were issued when the agreement was made.sectionGG1No action taken pursuant to this section shall change any requirement to file articles or other documents with the Commission or affect the rights of any creditors or other third parties.sectionHH1The duration of an agreement authorized by this section shall be as set forth in the agreement, except that the duration of an agreement that became effective prior to July 1, 2015, remains 10 years unless the agreement provided otherwise or is subsequently amended to provide otherwise.sectionII1An agreement among shareholders of a corporation that is consistent with the other provisions of this chapter that does not comply with the provisions of this section shall nonetheless be effective among the shareholders and the corporation.sectionJJ1