A company may be owned by one or more shareholders. The relationship between the shareholders and the rules of engagement are detailed in a shareholders agreement. It is the prerogative of founding shareholders to determine how the company will be owned and managed. Adding new shareholders requires amendment in the shareholders agreement to accommodate their conditions of entry and exit and to secure their investment returns.
Disputes, misunderstandings and misgivings between shareholders may lead to operational difficulties and failure of business. Shareholders agreement protects the interest of all shareholders by referring to the rules set at the time of incorporation of the company. Some have described it as corporate prenuptial agreement.
A shareholders agreement is confidential and its contents need not be filed or made public.
Our Paralegal professionals offer tailored advice on how to enter into shareholders agreement. For a free consultation please call our consultants now on +9714 341 9701
