Shareholders' agreement

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.

See also

• Articles of Association
• Articles of incorporation
• Certificate of incorporation
• Company
• Company law
• Contract
• Liquidity event
• Memorandum of Association
• Mission statement
• Shareholder
• Special resolution