Legal
The Shareholders are the actual owners of a company. Shareholders of the company reap the benefits of the business success by way of increased stock valuation or in the form of dividends and profits. In the event of the company incurring losses, the share prices would fall or the shareholders suffer a decline in their portfolio’s value. It is important to uphold the rights of the shareholders. The disputes between shareholders are often settled according to the company’s Article of Association until a proper shareholder agreement is drafted. In other words, an agreement entered into by the company and its shareholders describing the rights and obligations is called the Shareholder’s Agreement.
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about 6 years ago