One of the unfortunate things I've noticed during my representation of bands is how few of them have a band agreement. This even includes many bands that have taken the time to organize as an LLC. I cannot overemphasize how important having a band agreement is. Here are just a couple examples I hope may illustrate the point.
1. Sting and the Police. "Every Breath You Take." We've all heard this iconic song, probably one of the most played songs of all time on the radio. When P. Diddy remade it as "I'll Be Missing You" after the murder of the Notorious B.I.G., Sting alone was entitled to all of the royalties that song generated.
2. Guns and Roses. Axl Rose has sole right to the band name, neither Slash nor any of the other original members can perform under that name.
The band agreement is of vital importance to determine how various issues such as these will be solved. Bands can and do break up all of the time. The cost to sort things out later make getting an agreement done right critical.