Shareholder Agreement

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Shareholder Agreement

A shareholder agreement is an important document by which shareholders of a corporation know their role, responsibilities and the number of shares they have in the company. It also lays down the goal of the company and other terms and conditions describing how the shareholders will be compensated. A proper shareholder agreement helps to avoid conflicts between shareholders regarding their rights and contribution towards a company’s policies and decisions.

A shareholder agreement must have the names of all the founding shareholders and describe the company, its purpose, what products or services it sells, its area of business etc. The amount of capital to be supplied by each party must be mentioned clearly along with their names, and the number of shares to be received by them should be included. Other issues to be addressed in a shareholder agreement is a description of the rights, power, voting rights, responsibilities of the shareholders and profits will be split among them.

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Sample Shareholder Agreement

Shareholder Agreement

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