The Shareholders Agreement

A shareholders agreement is a contract made between all shareholders of the company, or can be made by just some of them (for example between two shareholders who each have a large shareholding in the company). The shareholders can be individuals or corporate bodies. A shareholders agreement can be made at any time during the lifetime of the company but it is most commonly made when a new company is set up because it establishes areas of agreement, at an early stage, between those involved with the company.