Shareholders agreement

The contract between shareholders covering transfers, decisions requiring consent, and exit rights.

Example

Drag-along and tag-along provisions on a sale.

Important

It governs the moments that matter most — someone wanting out, or an acquisition offer arriving.

Related terms

• Founders agreement — The document setting out equity split, vesting, roles, decision-making and what happens if a founder leaves.
• Governance — The rules and structures by which decisions get made and the company is held accountable.
• Cap table — The record of who owns what part of the company — founders, employees, option pool and investors.

Lessons that explain it

• The contracts you will actually need — Founders agreement, employment and contractor agreements, customer terms, privacy policy, NDAs. What each is for, and which ones matter. (12 min)

All 176 terms in the Founder glossary