This article posted on our partner site discusses the use of a shareholders’ agreement to confront the challenges that arise when building a successful company. A properly drafted shareholders’ agreement can roadmap the foreseeable and unforeseeable twists and turns associated with growing a business. The article lays out scenarios that could be adequately dealt with through a shareholders’ agreement These include if one person wants to sell and others do not, if investors are requiring the formation of a board of directors but the partners do not want to lose control of the company and if one partner leavers who has a required knowledge or skills set for the company to run adequately.

This comes to you as a part of Clausehound’s exciting new collaboration with Mondaq!


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This article is provided for informational purposes only and does not create a lawyer-client relationship with the reader. It is not legal advice and should not be regarded as such. Any reliance on the information is solely at the reader’s own risk. is a legal tool geared towards entrepreneurs, early-stage businesses and small businesses alike to help draft legal documents to make businesses more productive. Clausehound offers a $10 per month DIY Legal Library which hosts tens of thousands of legal clauses, contracts, articles, lawyer commentaries and instructional videos. Find where you see this logo.

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