Shareholders' agreement
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UK company law - shareholders - contract.
A shareholders' agreement is an agreement between the shareholders in a limited company.
The contents of a shareholders' agreement, when there is one, might typically include matters such as:
- Restrictions on sale or transfer of shares.
- Compulsory sale or transfer of shares in particular circumstances.
- Restrictive covenants to protect the business.
- Entitlements to receive accounting and other information.
A well-considered and well-drafted shareholders' agreement may help to reduce future shareholder disputes.
