Issues that should be covered in a shareholders' agreement include:
- How directors are appointed and how the board will take decisions.
- Dispute resolution procedures.
- How the business will be financed and how profits will be distributed.
- Rules on transferring shares, including what happens when a shareholder dies.
- Rules on employment of family members (see question 7).
- Rules restricting shareholders from competing with the business.
- Rules protecting confidential information.
- Agreements protecting external shareholders (see question 16).
