A shareholder agreement is one of the most fundamental agreements that any founder should put in place if they are having fellow shareholders. Some people think that you only need a shareholder agreement to protect minority shareholders, but that is not correct. In many ways, it is needed to protect the majority shareholder.
Majority shareholders need to consider things like:
- Pre-emption rights
- Drag along rights
Not sure what a pre-emption right or drag along right is? We cover these in more detail below.