Shareholders’ Agreement

A shareholders agreement is a pre-arranged document that outlines how the company will operate, and the rights and obligations that the shareholders of the company have. The purpose of this document is to ensure that shareholders are treated fairly and that their rights are protected. It typically includes: the number of shares issued; a cap table; any restrictions on transferring shares; pre-emptive rights; and payments details in the event of an exit. Shareholders’ agreements are optional and are most helpful when an organization has a small number of active shareholders.

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