What is a shareholders' agreement?

A shareholders’ agreement is a legally binding document that outlines the rights, responsibilities, and obligations of the shareholders of a business in Illinois. This document defines the ownership structure of the company, the percentage of ownership each shareholder has, and the voting rights of each shareholder. Additionally, it outlines the procedure for issuing new shares and transferring or selling existing shares. The agreement also sets out the authority of the shareholders when it comes to making decisions in regards to the company. This document is essential for businesses as it helps to protect the interests of all shareholders and ensures that the company is run in a fair and equitable manner. It also serves as a way to resolve any potential conflicts that may arise between shareholders. With a shareholders’ agreement in place, the company is better positioned to take advantage of future opportunities and make the necessary decisions for the benefit of all parties involved.

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What is a shareholders' agreement?

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