Quick & Easy Service Shareholders' Agreement
An agreement governing the rights and obligations, transfer of shares, how ti company si going to be run and how the important decisions are to be made; is required. Get the one ready with Growbiz!
There are only 3 simple steps:
Advice on Requirements:
At Growbiz, we help you find exactly what you are looking for.
Document Drafting:
The first well drafted document will be shared with you within 3 days.
Iterations:
At Growbiz, we perform two rounds of iterations with no extra fees.
What is shareholder’s agreement?
A shareholder’s agreement simply governs the relationship between the shareholders of the company. The agreement outlines their rights and accountability, how the company is going to run, how shares are transferred, and how decisions are going to be made.
Advantages of Shareholder's Agreement
Clarifies Rights
It's major advantage is that it clarifies the rights and obligations of the shareholder and the rights that you reserve as the issuer of those shares by defining the rights and liabilities.
Small Changes Made Easy
The small and medium scale companies do not prefer to amend the constitution every time when there is any minor change. Hence, shareholder agreements are perfect for such companies.
Transparency
Shareholder’s Agreement acts as the manager of the relationship between small and large shareholders. It helps in differentiating the rights and obligations of small and large shareholders.
FAQs on Shareholder's Agreement
Sometimes, the circumstances occur when founders do not put the efforts as promised, such circumstances can have very messy endings but these can be avoided by having a shareholder’s agreement. Of course, if your company has one shareholder then you don’t need one.
A shareholder’s agreement usually covers the following points:
- Aim of the company
- Management and operations of the company
- Shareholder rights and accountability
- Issue of new shares and the voting rights
- Termination of agreement and share sale.