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The Easiest Explanation of a Shareholder's Aggrement

Shareholder Overview

A shareholder’s agreement is a joint contract made by the shareholders of a given corporation, most often in order to define the constitution and procedures for that corporation. A shareholder agreement might be made in lieu of an official constitution, or it may be made to replace an official constitution. The right to make a shareholder’s agreement flows directly from shareholders holding shareholder value within the company.

NEXT: The Role of a Shareholder in a Company

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