Shareholder agreements

Who needs a shareholders' agreement

Company law rules generally provide that the directors of a company are responsible for day-to-day management of its business, and make most of the decisions. Only a few matters (such as changes to the company's share capital, or to its articles) have to be referred back to shareholders for a decision. The shareholders have relatively few, but important rights to intervene, principal amongst which is the right to appoint and remove directors.

As between the shareholders themselves, company law rules generally provide that the will of the holders of a majority of the voting rights will prevail. A minority shareholder only has limited power to block shareholder decisions.

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