Before understanding what a shareholder's agreement is, we should understand what a shareholder is. A shareholder can be a person, company or organization that holds stocks in any given company. Sometimes they are called stockholders of any corporation that holds one or more shares of stock in the corporation. These shareholders receive declared dividends if the company is earning profits and performing well. They also have a right to vote in the company on certain matters and can also be elected on the board of directors.
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What Should Be Included In A Shareholders Agreement?
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