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Jaspreet Potter, a solicitor at IBB solicitors, explains that a shareholders agreement is a contract between a company and its shareholders to govern their relationship, rights, and obligations. This agreement, along with the company's articles of association, establishes internal rules to prevent future disputes and outlines how disputes will be resolved. It is advisable to create a shareholders agreement early on, at the inception of the company, to ensure all parties can agree on important matters before the business is fully operational.
