What is a shareholder agreement?
A shareholder agreement is a contract between an organization and the people who own equity or stock in that organization. Shareholder agreements typically address areas of ownership, value, rights, and share transfers. Ultimately, shareholder agreements provide guidelines to govern the relationship between corporations and their stockholders.
What are the pros and cons of shareholder agreements?
Failing to maintain a shareholder agreement form for your organization's stockholders can lead to serious headaches. It may seem easier to forgo sending out documents to be signed, but without signed shareholder agreements guiding your organization's stockholders, you may find yourself in a costly dispute down the road.