Introduction: Shareholder Agreements


After incorporating a business and organizing the corporate records, it is heavily recommended that the founders of a startup enter into an agreement that governs the relationship between the founders (or the broader group of shareholders). This agreement is referred to as the Shareholders Agreement. A shareholders agreement is often mistakenly referred to as a “partnership agreement” (which is an agreement amongst partners in a partnership).

Shareholders Agreements typically cover the following topics:

  • Operation and management of the corporation
  • Necessary approvals required to effect certain corporate actions
  • Restrictions on transferring of shares
  • General shareholder rights and protections
  • Minority shareholder rights and protections
  • Non-competition, non-solicitation and requirement to maintain confidentiality
In this Article, we will answer the following questions:
Did this answer your question? Thanks for the feedback There was a problem submitting your feedback. Please try again later.