A Complete Guide to the Importance of a Shareholders' Agreement
A Shareholders' Agreement is one of the most important documents a business can have, regardless of its size or stage of growth. Whether you're starting a new company, running an established business, or planning for future investment, having a shareholders' agreement in place helps clarify the roles, responsibilities, and expectations of all parties involved. It serves as a roadmap for how the company is governed, how decisions are made, and how conflicts are resolved. In this article, we’ll explore the importance of a Shareholders' Agreement and why every company should have one. What Is a Shareholders' Agreement? A Shareholders' Agreement is a legal contract between the shareholders of a company. It sets out the rights and obligations of each shareholder and outlines how the company will operate. While a company’s articles of incorporation or bylaws establish the basic legal framework of the business, the Shareholders' Agreement goes much further by add...