Shareholder agreement
By outlining what a shareholder agreement is, it is far more likely to come to an agreement that works for all parties involved.
What is a shareholder agreement?
A shareholder agreement or a shareholder loan agreement details how exactly a company should run. It will also list the rights and obligations of shareholders and, as a result, will find a common legal ground for the venture between shareholders and the wider company. It can be between all or just some of the shareholders, depending on the circumstances involved. It is usually a good idea to put a shareholder agreement in place when a company is formed or when it issues its first shares.
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