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so finally youve decided to set up a company and I hope everything goes okay but heres the bottom line if the percent of businesses will fail in the first year due to some form of shareholders dispute and thats because building a business is stressful over time things change and if you start to argue youll take your eye off the ball profit margins will be affected and thats when cash flow takes a nosedive now a shareholders agreement will help prevent this and heres three reasons why firstly it helps regulate the relationships between you whether its profit splits management of the company even dispute resolution with clever drafting you can agree all in advance even the exit process so if doomsday strikes and you guys just cant agree any more you can walk away without the need for messy litigation secondly when it comes to investors one of their key concerns is clarity on individual rights an investor simply will not deal without a shareholders agreement in place thirdly expen