The shareholders’ agreement is intended to manage the relationship between the shareholders by determining the rights and duties of each. The shareholders’ agreement allows to: • organize share movements and the functioning of the company • anticipate the settlement of conflicts • provide for clauses relating to the shareholders’ voting rights, non-competition, and the terms of entry of a new shareholder Unlike the articles of association of the company, the shareholders’ agreement is a confidential document known only to the shareholders who sign it. It is not intended for the public. The shareholders’ agreement is binding only on its signatories. The shareholders’ agreement is different from the share purchase agreement
Shareholders’ agreement
- author : Dr. Hajar Malekian
- Category : commercial, glossary
- Reading time : < 1 minute
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