Based on their wide usage, shareholders' agreements
("SHAs") are of great importance in the sphere of
corporate law practice. Their popularity is based on the elasticity
they grant to shareholders in order to regulate their relations
among each other and with a company. Considering this importance,
we shall first analyze the legal relationship formed under SHAs and
their effects at the corporate level. Finally, we shall look at the
consequences of breaching SHAs.
In General
SHAs are agreements executed by the shareholders of a company,
or those aiming to hold shares in a company, whose purpose is to
regulate their relationship with each other, the company, and
especially the structural and procedural order to be applied within
the company. In terms of their usage in legal practice, SHAs
provide a level of elasticity that cannot be obtained via the
articles of association, and assure confidentiality among
shareholders.
