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Shareholders' Agreement
A shareholders' agreement is a legal document typically created when a business is incorporated or when the shareholder structure changes. It outlines the relationships between shareholders as well as the shareholder and the company by defining their rights and restrictions.
Why is it important?
It is critical that the shareholders agreement is well defined from the onset to avoid potential problems, conflicts or disagreements down the road.
A lawyer and accountant should be consulted when creating a shareholders agreement.
Resources
- Business Basics Engineered by Mike Volker: The Shareholders Agreement
- The Law Society of British Columbia: Shareholders’ Agreement Procedure