What is a shareholder agreement?

A shareholder agreement is an agreement between all shareholders of a company in Washington that outlines the rights and responsibilities of each shareholder. This agreement is typically used for a corporation, which is a type of business that is owned by a group of people, called shareholders. A shareholder agreement helps to protect the rights of everyone involved and prevent disputes. The agreement should include details on the responsibilities and rights of each shareholder, including voting rights, dividend policies, and how profits will be distributed. It should also specify the number of shares each shareholder owns as well as the roles of the board of directors and management team. Some shareholder agreements also describe how a company can be dissolved or sold, how decisions should be made, and how new shareholders can be added. In Washington, shareholder agreements are enforced under corporate law. This means that all shareholders must follow the conditions included in the agreement. The shareholder agreement should be reviewed and updated to keep up with changes in the company, Washington state laws, and the economy. It is also important that all shareholders agree to the terms of the agreement and sign it.

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What is a shareholder agreement?

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