It's Fast. It's Furious. Get Your Rights protected by Shareholder's Agreement
Shareholders Agreement (Stockholders’ Agreement)
All about Shareholders Agreement
A
shareholders' agreement, also called a stockholders’ agreement, is an
arrangement among a company's shareholders that describes how the company
should be operated and outlines shareholders' rights and obligations. The
agreement also includes information on the management of the company and
privileges and protection of shareholders.
Basic of Shareholders Agreement
The shareholders' agreement is intended
to make sure that shareholders are treated fairly and that their rights are
protected. While bye-laws are mandatory and outline the governing of the
company’s operations, a shareholder agreement is optional. This document is
often by and for shareholders, outlining certain rights and obligations. It can
be most helpful when a corporation has a small number of active shareholders.
Purpose
The primary purpose of a shareholders’
agreement is to record the intention of the parties as regards the business.
This is likely to include what the company can and cannot do and how it is to
be managed. It is intended to protect and promote the business of the company
and the joint interests of the shareholders. It is intended to supplement and
underpin the constitution of the company contained in its Articles. A
shareholders agreement will be advantageous whenever there is more than one
shareholder in a company.
Shareholder’s agreement is a mechanism
which saves the company from losses and protects its interest. Every
shareholder agreement has to have the key provisions to create a balance
between shareholder interests and the company’s interests.
How EzeeStartup can help you
We have expert attorneys who draft Shareholder's agreements and provide required consultancy on subject in simple, cost-efficient, quicker way which will ease the process of business setup or expansion.
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