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[Music] shareholders agreement is a document not required by law but so strongly recommended by any corporate council shareholders agreement sets out the rights roles and responsibilities of each shareholder party without which there are no rules of the game and a lot of terrible things can happen and ill give you a few examples to give color to that statement say you have a business thats owned by two individuals lets say um the business is a restaurant and the business is run through a corporation so you have two shareholders you have no shareholders agreement one day one of the partners decides that they dont want to come in and work for the restaurant anymore what happens well without a shareholders agreement nothing the remaining shareholder is now in business for the exiting shareholder because as long as youre a shareholder it means you have a right to receive the distribution of profit on an annual basis proportionate to your shareholdings so you own fifty percent of the s
