The shareholders` agreement aims to ensure that shareholders are treated fairly and that their rights are protected. A person considered to be the majority shareholder of a company owns 50% or more of the shares. Typically, the majority shareholder is the founder of the company or, where a company has been inherited, the descendants of the founder. By holding so many shares, the majority shareholder also has voting rights relative to the percentage of shares held. This means that he or she has a considerable influence on how the company is run and the direction to take. Many majority shareholders hand over the company`s leaders to the managers and managers because they want a hand-off approach. Sometimes majority shareholders choose to give up their role in the company and try to sell their shares to their competitors. A majority shareholder of a small business often also plays the role of CEO. In large companies, valued at billions of dollars, investors could include institutions that own a considerable number of shares. In some cases, there is a situation in which a single person owns all the shares of the company, so a shareholders` agreement would hardly be necessary. For the rest, some sort of shareholders` agreement is certainly a good idea, especially in small private companies, which only hold a small number of shareholders or when a company started with an owner and is now looking for other investors. The success of a private company usually depends on the people who have control of the company. Unforeseen events sometimes occur, which can lead to changes in the holding of shares, which can have a negative impact on the success of a company.
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