Shareholder Agreement

A shareholder agreement is a legal contract among the shareholders of a company that outlines their rights, obligations, and relationships. It typically includes provisions for the ownership and transfer of shares, the management and control of the company, the distribution of profits and losses, and the resolution of disputes. The agreement may also include provisions for confidentiality, non-competition, and buy-sell arrangements. Shareholder agreements are an important tool for businesses to govern the internal affairs of the company, protect the interests of the shareholders, and ensure the stability and continuity of the business. They provide a framework for decision-making, succession planning, and exit strategies. Shareholder agreements should be carefully drafted and periodically reviewed to ensure they are comprehensive, flexible, and aligned with the company’s goals and values.