Shareholders' Agreement: What You Need To Know
Shareholders agreements: A shareholders agreement is a legally binding contract between the shareholders of a company. A shareholders agreement determines the shareholders’ rights, responsibilities, privileges and protections. It can be used to protect investments, it creates a secure relationship among shareholders and maps out the running of a company. With a shareholders agreement, Tandoor Manufacturer there is clarity and certainty as to what can or cannot be done and most decisions are taken by consensus and discussion. Even though it is not a legal requirement to have a shareholders agreement in place it is strongly advised to do so as it protects the shareholders from any potential conflicts. Furthermore, a shareholders’ agreement is a private agreement and there is no requirement to file it at companies house. Thus, there is great confidentiality in what is contained in the terms of the shareholders’ agreement. However, a shareholders agreement cannot be used in the