A shareholders agreement is not really must-have for companies that have shareholders. A shareholders agreement is simply an agreement made by shareholders to bypass the default laws of your country in some cases that they are applicable. When there are disputes or problems within the shareholders, these default laws are then used to solve the problem. But when there is a shareholder agreement, you can solve the problems that arise in within the shareholders just between yourselves and the government will not be able to intervene. Having a shareholders agreement can be advantageous to you in some cases.
The shareholder agreement also defines the roles, responsibilities and functions of each of the shareholders therefore preventing a future dispute. It can also promote a harmonious relationship between the shareholders. Additional rights and restrictions on some of the authorities with shareholders that have less shares can also be decided w! ith the agreement. Once the agreement has been decided, it becomes final when it becomes a written document in a form of contract.
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