A Shareholders’ Agreement is a contract for company shareholders to govern the relationship between shareholders and the company’s management. Essentially, the purpose of any Shareholders’ Agreement is to serve as a dispute resolution mechanism; investor protection; and confidentiality.
This will include the important decisions that will decide on how a business will be run. You will first need to confirm which issues the agreement will cover (we have guidelines on that here). Of course, shareholder value will be one of the key items set out in this document as well as the overall ownership of the intellectual property (whether it lays with the company or the individual). Then, it’s important to agree on who will make decisions (shareholders or directors), as well as how the voting power of shareholders will add up.