Shareholder’s Agreement – Benefits And Advantages

What is a Shareholder's Agreement?

A Shareholder's Agreement is distinct from the company's constitution. Without a Shareholder's Agreement, the Company would be controlled solely and exclusively by the exercise of shareholding or directorship rights, through its constitution, and the Cyprus Companies Laws, which are generally insufficient, to protect the rights and interests of minority shareholders.

A Shareholder's Agreement contains the rights and obligations of shareholders of a company, and commonly covers matters, governing the management and structure, initial and continuing funding, as well as the administration and business activities of the Company.

A Shareholder's Agreement, is a significant and useful document, because it provides a mechanism, for setting out the principles, upon which the shareholders or partners, in a joint venture agree to run their business.