{"id":172762,"date":"2022-07-26T00:20:37","date_gmt":"2022-07-25T23:20:37","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=172762"},"modified":"2025-07-02T00:41:09","modified_gmt":"2025-07-01T23:41:09","slug":"shareholder-agreement","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/corporations\/shareholder-agreement\/","title":{"rendered":"What is a Shareholder Agreement?"},"content":{"rendered":"\n

As a shareholder, you may be familiar with the general rights that you have in a company. However, you may be in a situation where other shareholders have asked you to sign a shareholders\u2019 agreement. Put simply, a shareholders\u2019 agreement is an additional contract between you and other shareholders of a company. It contains additional terms<\/span> that are not otherwise binding under company law, such as the permanent right to be one of the company\u2019s directors. <\/span>This article will explain the general purpose of a shareholders\u2019 agreement and consider some common terms in shareholder agreements. <\/span><\/p>\n\n\n\n

Your (Limited) Rights as a Shareholder <\/span><\/h2>\n\n\n\n

When you become a subscriber to a company upon its incorporation (i.e. you are a founding shareholder<\/a>), you enter into a special kind of contract. Under this contract, you owe certain limited obligations to:<\/span><\/p>\n\n\n\n