A Shareholders Agreement is an agreement entered into by shareholders of a company to govern or otherwise regulate the conduct of the shareholders vis-à-vis each other and vis-à-vis the company. The Agreement provides for matters beyond those ordinarily provided for in the statutory Articles of Association and more comprehensively sets out how the Company is to be managed and financed. This Agreement is useful in clearly enumerating the shareholders’ rights and obligations as well as detailing how parties are to conduct themselves when it comes to exiting from the Company, acquiring shares in the Company and how to resolve disputes amongst other shareholder issues.
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