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Jaspreet Potter, a solicitor at IBB Solicitors, explains that a shareholders agreement is a contract between a company and its shareholders to govern their relationship and obligations. This agreement, along with the articles of association, creates internal rules for the company and its shareholders to follow. The purpose of the agreement is to prevent disputes and provide a framework for resolving any issues that may arise in the future. It is advisable to have a shareholders agreement in place from the beginning to avoid complications later on when the business is established and running.
