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Shareholders agreement is a document not required by law but strongly recommended by any corporate council. It sets out the rights, roles, and responsibilities of each shareholder party. Without it, there are no rules, leading to potential issues. For example, in a scenario where a business is owned by two individuals without a shareholders agreement, if one partner decides to leave, the remaining partner is now in business for the exiting partner. As long as you're a shareholder, you have the right to receive profit distributions proportionate to your shareholdings.
