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A shareholder agreement is essential for companies with multiple shareholders, as it delineates the rights, responsibilities, and decision-making processes among them. Key areas to define in the agreement include: the purpose, which outlines shareholder rights and responsibilities, as well as decision-making and dispute resolution processes; the ownership structure, detailing issued shares, ownership percentages, and transfer restrictions; and established decision-making procedures to guide how company decisions are made. This document safeguards shareholder interests and ensures smooth operation within the company.
