Shareholder agreement

A shareholders' agreement (sometimes referred to in the U.S. as a stockholders' agreement) is an agreement between the shareholders of a company relating to the ownership and management of the company.In strict legal theory, the relationships between the shareholders (as between themselves) and between the shareholders and the company are regulated by the constitutional documents of the company. However, where there are a relatively small number of shareholders it is quite common in practice for the shareholder to supplement the constitutional documents with a shareholders' agreement, particularly where the company is in the nature of a joint venture.
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A contract between the shareholders of the company and the company itself, in which certain things, usually the purview of the board of directors, are detailed. - (read more on Shareholder agreement)