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A shareholder agreement, on the other hand, is optional. This document is often by and for shareholders, outlining certain rights and obligations. It can be most helpful when a corporation has a small number of active shareholders.
Since a shareholders' agreement establishes the relationship between the shareholders, without one, you are exposing both shareholders and the company to potential future conflict. This is particularly true in situations where the voting shares in a company are held equally (50% each) by just two people or companies.
The reason for wanting a Shareholders' Agreement will generally be to assert veto rights: so that contrary to the general law the powers of the Board to run the business (or the shareholders to exercise their own power ? see below) are curtailed.
A shareholders' agreement is a contract that regulates the relationship between the shareholders and the corporation.
Although a SHA is not a legal obligation, its value should not be underestimated. It is often omitted with the view of saving time and money, however the lack of certainty created by not having a shareholders' agreement in place can often lead to disputes amongst the shareholders which can be costly to deal with.