8th November 2018
Good job! You’ve incorporated your brand new startup, and now you’re looking to grow your business. Hopefully, you have a few shareholders already. Your next step is to consider creating a shareholders’ agreement.
We know it might seem unimportant at the moment, but making a shareholders’ agreement is a vital step in protecting the fate of your business. Also known as a founder’s agreement, a shareholders’ agreement will regulate how company changes are made in the future.
What is a shareholders’ agreement?
A shareholders’ agreement is a legal contract, agreed to by all company shareholders, as a precautionary measure regulating the way they conduct business. It can form a basis for the procedures that should be followed should any unforeseen issues arise between your stakeholders and the company itself.
This protects the success (and consequent value) of your company. Plus, there’s no…