Shareholders’ Agreements In Cyprus: Why They Matter And What They Should Include

When a new company is formed, the shareholders are usually focused on the opportunities ahead rather than the possibility of future disagreements. The parties may be long-standing friends, family members, business partners or investors who share a common objective and expect the relationship to remain positive.

In practice, however, many corporate disputes arise not because the parties acted improperly, but because important issues were never discussed at the outset.

One shareholder may wish to leave the business. Additional funding may become necessary. The parties may disagree about the direction of the company, the distribution of profits or the appointment of management. In some cases, shareholders who initially worked well together find themselves in a complete deadlock, leaving the company unable to make important decisions.