SHAREHOLDERS AGREEMENTS – THE FUNDAMENTALS

If company that has a relatively few number of shareholders, then the potential for disagreement and deadlock is high. This is why many corporate law experts often advise every company with more than one shareholder to draft a shareholders’ agreement, even if there is no legal requirement to sign one.

glass vessel bathroom sink

Shareholders’ agreement is a document that helps each shareholder to manage their expectations and to provide for when any dispute may arise between parties. It is good for any company in general as it gives way for a smoother and profitable operations, and at the same time reduces the risk for potential conflict.

ALSO READ  7 ways to make your home look impressive

One of the benefits of the shareholders’ agreement is that it protects minority shareholders in case a majority of shareholders agrees on something that compromise the interest of the minorities. When there is an agreement in place, majority shareholders cannot force issues which are inconvenient for the minority or which are not in the minority shareholders’ interests.

To learn more about the fundamentals of shareholders’ agreement, check the infographic below from Amorys Solicitors.

ALSO READ  Paleo vs Keto: Which diet plan is best suited for your body goals?

Shareholders’-Agreements Infographic

glass vessel bathroom sink

Aravind
Follow me

Aravind

I am the Blog owner of fulltalktimefreesms, which offers best information about Health tips,Travel tips, Mobile plans, SEO tips, Social media tips, Home Decor tips, Technology Tips and Telecom news and review.
Aravind
Follow me

Leave a Reply

Your email address will not be published. Required fields are marked *