Explore the history of the classic Lorem Ipsum passage and generate your own text using any number of characters, words, sentences or paragraphs.
A shareholder�s agreement is a legal arrangement among the shareholders of the company. The main motive behind the establishment of shareholder agreement is to protect the shareholders� investment in the company. Further it establishes fair relationship between the shareholders and govern how the company should be run.
Specific, important and practical rules relating to the company and the relationship between the shareholders shall be stated in the shareholder�s agreement.� The shareholder�s agreement can be beneficial both to minority and majority shareholders.
Benefits of Shareholder�s Agreement
Shareholder�s agreement helps the minority shareholders to have a say in the major decision taken for the company. These major decisions may include the decisions on the issue of new shares, appointment or removal of directors, taking on new borrowings or changing the main trade.� However, if the shareholders� agreement requires all decision to be unanimous this could cause problems and ultimately prevent your company carrying out its business.
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