j$k1710180j$k
(This is one of the reasons why most small businesses today are created as LLCs.) Second, and perhaps most importantly, the agreement can be used in advance to establish rules in the event of a dispute between shareholders. While you may think that you and your co-shareholders will never disagree, disputes between business partners are all too common. This type of shareholders` agreement must be unanimously approved by all shareholders and must be established in writing – in the articles of association of the company, in the articles of association of the company or as a separate written contract executed by each shareholder. The agreement may only be amended or terminated with the unanimous agreement of the existing shareholders. The agreement is also binding on all subsequent shareholders.