Definition
A shareholder agreement is a legally binding contract between the shareholders of a company that outlines their rights, obligations, and responsibilities. It typically covers matters such as ownership percentages, voting rights, dividend policies, dispute resolution mechanisms, and restrictions on share transfers. A shareholder agreement helps protect the interests of shareholders and maintain harmony within the company.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.