Shareholders Agreement

Glossary

Banking

Shareholders Agreement

A shareholders\' agreement is a document that lays out how a company’s shareholders (i.e. its owners) divide their roles and duties. This can include a variety of matters, including shareholder and board meeting schedules, dividend policy, new share issues, how shareholders interact with executive management, the quorums required to approve key decisions, and how significant disposals are dealt with. Shareholder agreements are useful to minimise disputes but above all to clarify roles and responsibilities and how business must be conducted.

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