A shareholder’s agreement is the agreement between the shareholders of a corporation. Ideally, a shareholder’s agreement is going to address what will happen in the event of the death, disability or divorce of any of the shareholders. It will also often have buy-sell provisions. Also, a shareholder’s agreement, very importantly, will have provisions pertaining to what happens in the event of a disagreement between shareholders. This can be especially important in situations where each shareholder has fifty percent of a company.
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