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A shareholders' agreement is an arrangement among the shareholders of a company.It protects both the business and its shareholders.
- Advantages of Shareholder's Agreement:
★ Dividends: Companies may distribute a portion of their profits to shareholders in the form of dividends. This can provide a steady income stream for shareholders, which can be especially attractive for investors seeking income.
★ Voting rights: Shareholders may have voting rights that allow them to have a say in the company's management and decision-making. This can provide a sense of ownership and influence over the direction of the company.
★ Limited liability: Shareholders have limited liability for the company's debts and liabilities. This means that they are not personally responsible for the company's debts beyond their investment in the company.
★ Potential for capital appreciation: Shareholders can benefit from capital appreciation if the value of the company's shares increases over time. This can provide a potential return on investment and increase the value of their portfolio.