A shareholders’ agreement, which sets out how a company is operated and governed, should be a key element of any business and established at the onset. The shareholders’ agreement lays out the obligations as well as the rights of shareholders and sets out how any potential disputes must be handled. Although not to be confused with the company’s constitution (which are mandatory), shareholders’ agreements are optional—but an important aspect that outlines a company’s structure. Other elements of a shareholders’ agreement may include:
description of the company, its purpose and identification of shareholders;
details regarding the price and number of company shares;
explanation of who may become shareholders in the future;
rules regarding transfer of shares; and
rights of current shareholders to purchase additional shares.
Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.