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a shareholders agreement is an agreement between all of the owners the shareholders of the corporation it sets out the rights between the shareholders and it usually deals with things like the duties and powers of the board of directors as well i talk about shareholder agreements more in other videos so you can get more details there but some common situations that most shareholder agreements try to address are things like what happens if a shareholder dies or becomes disabled or gets divorced and all of a sudden ex-spouse has a right to own shares in your business what happens if the shareholders arent getting along you need some sort of dispute resolution mechanism what happens if a shareholder wants to sell their shares to a third party you want to have some say in that so youre going to have some sort of restrictions on the sale or transfer of shares and how is the company going to distribute dividends or distributions to the shareholders youre going to want all of that spelled
