A shareholder’s agreement is a legally binding contract between the shareholders of a company. It outlines the rights, responsibilities, obligations, and protections of each shareholder.
Identification of Parties
The agreement should clearly identify the shareholders involved, including their names, contact information, and the number of shares they own.
Purpose
Define the purpose of the agreement, which is usually to govern the relationship between shareholders and protect their interests.
Management and Decision-Making
Outline how the company will be managed and how major decisions will be made.
Transfer of Shares
Specify the conditions under which shareholders can transfer their shares, including any restrictions or pre-emption rights that may apply