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A shareholder agreement is essential for companies with multiple shareholders, detailing rights, responsibilities, decision-making processes, and dispute resolution. Key components include:1. **Purpose Definition**: Clearly outline the goals of the agreement, including shareholders' rights and responsibilities.2. **Ownership Structure**: Specify the number of shares issued, percentage ownership for each shareholder, and any transfer restrictions.3. **Decision-Making Procedures**: Establish protocols for making company decisions.These elements provide clarity and protect the interests of all shareholders by ensuring a structured approach to governance and conflict resolution.
