What is a shareholder agreement?
It 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, these 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 shareholders 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 agreements guiding your organization's stockholders, you may find yourself in a costly dispute down the road.