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Also known as: stockholder agreement, SHA

Shareholder Agreement

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Definition

Shareholder Agreement: A shareholder agreement governs relationships between company shareholders—covering voting rights, transfer restrictions, drag-along/tag-along rights, and protective provisions. It supplements the company's bylaws with more detailed terms agreed upon by shareholders, especially important when multiple parties hold equity.

Example Usage

Our shareholder agreement includes right of first refusal on share transfers and drag-along rights for a majority-approved acquisition.

Common Misconceptions

Bylaws cover everything. Shareholder agreements add specific terms bylaws can't easily accommodate.
Only for public companies. Private company shareholders benefit from clear governance terms.
Standard terms work for everyone. Negotiate terms that fit your specific situation and investor relationships.

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