What is a Shareholders Agreement (SHA)?
The Shareholder’s Agreement is meant to protect the interests and assure the correct treatment of a company’s shareholders. In contrast to company by-laws, which are required by the Companies Act, the Shareholder’s Agreement is an optional agreement between part or all of a company’s shareholders.

The Shareholders Agreement is a contractual agreement between the parties that is solely binding on the parties to the Agreement. A well-prepared Shareholders Agreement will assist the parties in maintaining a good relationship.

The following information is included in this Shareholder’s Agreement:

Details of the Parties entering into this Agreement.
The total authorised capital of the Company.
The Shares held by each Shareholder and their percentage of Company ownership.
The details of the first refusal right by other Shareholders before transferring any Shares.
“Drag-along rights” and “tag-along rights”
Provisions related to the Directors’/Board’s rights and obligations.
Details related to the Company’s management.
Non-compete clause.