If you are embarking on a joint venture or are already running a business with someone else, you need a shareholders agreement. A partnership cannot exist without a legal document that avoids potential conflicts and disputes.
A shareholders agreement protects the business interests of the company. Whether someone decides to leave in bad terms or sell their shares because of illness or retirement, a shareholders agreement will cover areas such as intellectual property protection and distribution of profit.
A shareholder or stockholder, is anyone who owns part of a company. If you own part of a business, that means that you are entitled to make decisions and to a percentage of the company’s profit. You’re entitled to the company’s income and assets, as well as voting rights and management selection.
At times an executive might disagree with the direction of the company but a shareholders agreement will cover any eventualities and settle issues before they escalate. SG
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