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A shareholders' agreement is a key document often used with startups that outlines how ownership and management decisions are handled among company owners. It details each shareholder's ownership percentage and delineates the decision-making process for critical issues, such as company sales or mergers, specifying the voting requirements needed for such decisions. Additionally, the agreement addresses scenarios involving disputes among founders or the departure of a founder, including how shares can be sold or transferred. Overall, it serves as a framework for managing essential operational and relational aspects within the company.
