Watch this video to understand what a shareholder's agreement is, why it is important and how to go about drafting an effective agreement.
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What is a Shareholder’s Agreement?
A shareholder's agreement is essentially an agreement which defines the relationship between the shareholder and the company. It sets out the following:
The investment brought in by the shareholders
Shares issued in view of the same
Rights and responsibilities of the shareholder
Means in which the shareholder can exit the company
Means by which a shareholder can transfer his or her shares in the company
