In many ways the relationship between the shareholders of a
company is akin to that of a marriage. In both cases the parties
involved set out with the best of intentions but there are bound to
be both good and bad times as circumstances change along the way.
One can think of a shareholders' agreement as being equivalent
to a marital agreement for a company. You hope to never need it but
will surely be glad it's there in case you do.
During the initial honeymoon phase of operating a company, the
shareholders may be cruising along and on the same page with
respect to all important business decisions. The company may be
growing fast and it may even be starting to show a profit. In these
good times it may be difficult to see why a shareholders'
agreement may be needed. Things are working great now, why should
they change? Why do today what you can put off thinking about until
tomorrow?
