Why Is A Shareholders Agreement Necessary?

A Shareholders Agreement contractly concludes, formalise and governs the relationship as well as the duties and responsibilities between all stakeholders to the company.

By clearly setting out the rights and responsibility of each party as well as the manner in which profits will be shared, it provides clear guidelines to follow if and when key decisions need to be made, or a dispute arise.

By concluding a shareholders agreement, the parties involved can ensure that everything is transparent and that all parties are on the same page.

It is important to note that it is vitally important to identify each companies unique needs and requirements when drafting a shareholders agreement. After a proper analysis of the business’s nature and relationship between shareholders and directors, a commercial attorney can then structure a correct Shareholders Agreement to benefit the company.

Contact our legal team for more information on structuring a Shareholders Agreement to benefit your companies needs and requirements.