What is a shareholder agreement?

A shareholder agreement is a written document that governs the rights, responsibilities, and obligations of the shareholders of a corporation in South Carolina. The agreement may include the rights of shareholders to buy and sell their shares, receive dividends, vote at shareholder meetings, nominate board members, or receive priority in a dissolution of the company. Shareholder agreements also outline how disputes among shareholders shall be handled, and the circumstances in which one shareholder can buy out another. Additionally, the agreement may contain information about the company’s operations and how profits, losses, and expenses are handled. Lastly, the agreement can also include important provisions regarding the transfer of ownership, the sale of the company, and other matters that dictate the future of the business. All in all, a shareholder agreement is an important legal document that establishes the relationship between shareholders and the company.

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