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A shareholders' agreement is a legally binding contract between the shareholders of a company. It defines the shareholders' rights, privileges, protections, and obligations, and it helps manage potential business and ownership disputes.
In greater detail, the agreement typically contains provisions for the regulation of the management of the company, the control and ownership of shares, dispute resolution, and protection of minority shareholders. The importance of this agreement lies in its ability to offer guidelines and rules for decision-making and conflict resolution, minimizing the potential for future disputes. As a startup founder, understanding this document is crucial to maintaining the harmony of your business relationships and protecting the integrity of your company.
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