Shareholders' Agreement (SHA)

• A shareholders’ agreement is a legal document by and between the shareholders of a company that defines the rights and obligations of the shareholders.
• An SHA is one of the most important documents that the shareholders can have as it is essential for managing ownership, preventing disputes, controlling bad leavers and regulating company operations.
• Main sections include Issue of New Shares, General meetings of the shareholders, Board of directors, Managing director, Interested party transactions, Right of access to the books, Non-competition and non-solicitation, Intellectual property rights, Negative pledge, Transfer of shares, Exit (incl. drag-along, tag-along and bad leaver), Confidentiality, Term and termination, Breach of agreement, damages and indemnification, and Force majeure.

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