Perhaps the most useful is for a company to have a small number of active shareholders. Some people who have a shareholders` agreement will never have to rely on it, but there will be many more cases where shareholders wish they had taken the time to make a proper deal. Before entering into a shareholders` agreement, a shareholder should be accompanied by a share certificate as proof of the purchase of shares in a private company. Finally, the shareholders` agreement terminates if all shareholders agree to terminate it, as stipulated on a given date in the agreement. This article explains what a shareholders` agreement is and why you should have one. A shareholders` agreement, also known as a shareholders` agreement, is an agreement between the shareholders of a company. This agreement defines how the company is managed and defines the rights, powers and obligations of shareholders, directors and management. Shareholder agreements also define the rights, roles, duties and responsibilities of directors and senior managers; create stock options to buy or sell shares; determine what will happen in the event of the death or retirement of a shareholder; determine the number of directors in the office and their functions; and existing shareholders have the right to approve future shareholders….