Shareholders Agreement

Document Description:

This template defines how the shares of a company are divided amongst its shareholders, in terms of number of shares (a share is a certificate representing one unit of ownership of a company’s stock). Generally speaking, this acts as a company ownership document that sets out the rules shareholders must abide to in relation to the sale, purchase or transfer of stock. It also details how shares are transferred in the event of termination, retirement, death or disability of a holder.

Collectively, holders may use this to set restrictions on the transfer of stock and occasionally establish its fair selling price. This contract is typically used among shareholders of a close corporation (a corporation owned and controlled by a small group of people and whose stock is not publicly traded).