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A shareholder agreement is essential for companies with multiple shareholders, as it outlines their rights, responsibilities, and decision-making processes. Key areas to define include: 1) Purpose of the agreement, which specifies shareholder rights and the dispute resolution process; 2) Ownership structure, detailing the number of issued shares, ownership percentages, and transfer restrictions; 3) Decision-making procedures that establish how the company will operate and how decisions will be made among shareholders. Overall, a well-drafted shareholder agreement is fundamental for ensuring clarity and preventing disputes among shareholders.
