A Shareholder' agreement or stockholders’ agreement is a legal document that lays down the rights and responsibilities of Shareholder of a company. It also lays down the fair pricing of shares and protects the interest of Shareholder by allowing them to decide who may become future Shareholder in the company.
A Shareholder agreement is an important investment document of a business as it also enumerates the percentage of a shareholder’s ownership in the company, restrictions on the transfer of shares, dispute resolution between the company and shareholder, etc.
Once the requisite information is submitted and sent to the lawyer, the lawyer creates the shareholder agreement draft and sends it for approval. Necessary changes are made if required and the document is finalised and ready to be signed.