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Other Names: Shareholder agreement Company shareholders' agreement Company members' contract Shareholders’ contract

What is a Shareholders' Agreement?

A Shareholders' Agreement is a contract between the owners of a company that defines their roles, rights and obligations as company shareholders. Shareholders’ Agreements supplement a private limited company’s articles of association and help set out how the company is to be run. For more information, read Shareholders’ agreements.

When should I use a Shareholders' Agreement?

Use this Shareholders' Agreement:

when you and other individuals are shareholders in a private limited company that has ordinary shares only
to supplement the company's Articles of association (ie articles) with provisions relating to shareholders' powers and entitlements
to keep these additional provisions confidential, in a private contract
to make it easier to change provisions in the future without having to amend the company’s articles