Re: Album Shares - Shareholder Agreement Question
I'm no lawyer, but suggest you get one.
Having an agreement is a must if it's going to be released commercially. It's great that you can all agree to those terms, but very important that it's documented in a legally binding agreement that will stand up in court when the one guys wife convinces him that he deserves more.
I'm not sure a simple document written up by the band would actually hold up in court, I was told by a lawyer that it wouldn't, but didn't get an explanation why.
I find your split is interesting, obviously I don't know your writing practices, but are you taking into consideration both songwriting and performance royalties? As in, are you just adding them together and doing the split from there? Are all member going to be happy with this? What happens when one person wrote the lyrics while the other wrote the melody? What if someone wrote a chorus and another wrote a verse?
These are all questions I ask in reference to "is it a good idea or a bad one?"
The bad reasons are that it sucks to have to deal with the business end of the creative process that you've been working on - this can break up bands instantly or create life long resentment between members. The good reasons are that everyone's butt's are covered when the gold-diggers rear their ugly heads.
Not sure about CMRRA, but I'm a member of Socan and I currently accept 100% of a bands funds - the other members of the band didn't sign anything to allow me to do this, so I can't see it holding up in court.
It's not cheep, but a proper lawyer is your definite answer. Especially if you enter contracts with other parties such as labels or distribution.
I've love to hear back on your findings. I'm in the beginning process of something similar to you, I'll post any new / relevant info I get.