Area of Law: Business Law
Answer # 225
Shareholder agreementsRegion: Ontario Answer # 225
A shareholder agreement is an agreement between the shareholders of a corporation that details the rights and obligations of each shareholder. Shareholder agreements are often used in corporations where there are not very many shareholders. Shareholder agreements usually cover topics such as how shareholders can transfer their shares, how disputes between shareholders will be resolved, and how shareholders may vote in annual or special meetings.
Every shareholder agreement should be tailored to the specific requirements of the corporation. The guidelines contained in shareholder agreements should be kept simple and easy to follow.
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