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A shareholder's agreement, also known as the stockholder's agreement, is a legal contract involving multiple shareholders of a company.
When a Corporation warrants its shares, it lists the shareholder names as well as the number and type of shares each shareholder owns at the time that the shareholders' agreement is signed.
There are certain things that shareholders and directors are not permitted to do. Within these agreements, the corporation lays out its expectations of the shareholders' behavior and obligations and the shareholders establish the. Legal problems can arise from misunderstandings, and this document reduces the level of misunderstandings so there are fewer risks of lawsuits and related difficulties.
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