A Shareholder Agreement protects the basic economic interests of the shareholders by clearly outlining the terms of the business relationship between the shareholders. This Agreement covers various matters, such as the number of shares held by each shareholder, the method of distributing dividends, management and control of the business, when to wind up the business and so on. It can also help resolve disagreements among shareholders, and provide a more equal distribution of power to protect the shareholder minority's best interests.
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