What Is a Shareholder Agreement and Why Does Your Startup Need One? 📈 When you’re starting a business, one of the most important documents you’ll need to prepare is a Shareholder Agreement (SHA) . If you're in a partnership or planning to issue shares in your startup, understanding the key aspects of a Shareholder Agreement is crucial. Let’s explore why having an SHA is essential and how it can protect your business and its stakeholders. 🔑 📌 What Is a Shareholder Agreement (SHA)? 💡 A Shareholder Agreement (SHA) is a legally binding contract that governs the relationship between a company's shareholders. It outlines their rights, obligations, and responsibilities, as well as how the company will be managed. The SHA also covers the rules around share transfers, decision-making, and dispute resolution. 💬 📌 Key Elements of a Shareholder Agreement: Ownership and Share Structure – Defines the distribution of shares among the shareholders and the total number of shares issu...
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