Why Do Entrepreneurs Need a Shareholder Agreement?
For entrepreneurs, a shareholder agreement is essential for several reasons:
1. Clarifying Roles and Responsibilities: It defines each shareholder's role and their involvement in the business. 2. Conflict Resolution: Provides mechanisms for resolving disputes, which is vital for maintaining harmony and ensuring business continuity. 3. Protecting Minority Shareholders: Ensures that the rights of minority shareholders are safeguarded. 4. Exit Strategy: Establishes procedures for the transfer or sale of shares, important for succession planning and exit strategy.