Shareholder Agreement Dividend Distribution

A shareholders` agreement is in fact a contract between the shareholders of a company and offers additional protection with regard to ownership and the procedures to be taken with regard to certain decisions. While some of the issues to be addressed in the shareholders` agreement could be covered by the articles of association, it may be preferable to include these provisions in the shareholders` agreement, as it is a confidential document – while the articles of association are publicly available. This article describes the main provisions of a shareholders` agreement. Board of Directors For many companies, day-to-day activities are the responsibility of the management team, with the board of directors having a strategic oversight role. In large companies, the distinction between the board of directors and the management team is obvious; However, in small businesses, they are generally the same. .