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although no laws force shareholders to enter into an agreement it may be best if the shareholders and the company have one in place let's go over the issues a shareholders agreement is an arrangement among the shareholders of your company it details processes like the operation of the company and the relationship between the shareholders it protects the entity and the shareholders investment in the entity the purpose of the agreement is to establish specific rights of the shareholders such as protective provisions that require shareholder vote before the company enters into a transaction that may affect the shareholders equity position in the company here is a list of some of the many provisions found in shareholders agreements by setting out methods of addressing future issues business owners can avoid future costly and stressful disagreements having a shareholders agreement in place in the early stages of the business prompts shareholders to think about the various issues that may a...
