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Home Q&A Forum Pros & cons of shareholders agreements?


Shareholders Agreement


Asked on Jul 8, 2023

Pros & cons of shareholders agreements?

I am a shareholder in a small business and am looking to draw up a shareholders agreement. I understand that a shareholders agreement can protect my interests as a shareholder, but I am not sure of the pros and cons of such an agreement. I would like to know more about the benefits and drawbacks of having a shareholders agreement in place.

1 Attorney answer




Answered 361 days ago

Thomas L.

ContractsCounsel verified

Business Lawyer
Licensed in Connecticut
Free Consultation

Shareholders have rights and powers under the corporate law of the jurisdiction in which the company is incorporated. But many stockholders, especially in private companies, demand additional powers and protections.

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