July 15, 2020
Hi James, it’s not necessary, but we very much recommend having one. A shareholders’ agreement regulates the relationship between the shareholders of a company and provides for the management of the company’s business. It deals with things such as the appointment and removal of directors, the issue and transfer of shares, entering into different types of transactions, competing against the company, ownership of IP and much more. Have a look at some of the articles we’ve written on shareholders agreements in our Learning Centre and you’ll quickly see a long list of benefits.
Importantly, shareholder agreements reduce the likelihood of disputes between shareholders and regulates those disputes when they do happen. Without that regulation, businesses can be destroyed.
Have a look at some of the articles in our learning centre for more information.
If you have any more questions, just let us know. 🙂
