Sample Shareholders Agreement

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Document Overview

A Shareholders’ Agreement is a legally binding contract made among the shareholders of a company that outlines their rights, obligations, and relationship with one another and with the company. It supplements the Articles of Association and governs how the company will be owned, managed, and operated.

It is typically entered into at the time of incorporation or when new investors or shareholders join the company.
The agreement ensures transparency, accountability, and smooth operation of the business by preventing disputes and clarifying how major decisions will be made.

Under the Companies Act, 2015, a Shareholders’ Agreement:
1. Is recognized as a contractual document that binds all signatories.
2. Works alongside (but takes precedence over, in practical terms) the company’s Articles of Association where conflicts arise.
3. Provides enforceable protection for both majority and minority shareholders, beyond what the Act offers by default.

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Sample Shareholders Agreement

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