A shareholders’ agreement helps establish a framework for the growth and development of a company by setting out the legal relationship between the shareholders. It sets out enhanced shareholders’ rights and the company’s decision-making process at board and shareholder level. This might include the right to appoint directors, a dividend policy, non-compete provisions and minority shareholder protection. A key aspect is also exit from the business from individual shareholders transferring their shares or the company taking new investment to the sale of the company as a whole.
The day-to-day management of a company is typically carried out by the appointed directors. These individuals exercise all powers of […]Read more