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This overview covers the importance of shareholder agreements for small businesses. It highlights how partnerships often emerge from shared ideas and circumstances, leading to joint decision-making challenges. Company law dictates that shareholders with more than 50% ownership can pass motions at meetings, while those owning over 75% can control the company outright, which may create difficulties in situations with equal shareholding among founders or varying ownership stakes. Proper agreements help manage decision-making processes and address disagreements or exit scenarios, ensuring smooth operations and clarity in roles among all shareholders, including directors and non-directors.
