Shareholder Agreement
Definition
A shareholder agreement is the contract among a company’s owners governing share transfers, voting, board composition, and protective rights.
How it comes up in fundraising
In venture deals these terms live across the stock purchase agreement, investor rights agreement, voting agreement, and ROFR agreement, collectively defining the power map.
Frequently asked questions
What protective provisions do investors get?
Veto rights over actions like new financings, sale of the company, budget approval, and senior hires, typically held by preferred majority.
What should founders watch in these documents?
Board control, veto thresholds, drag-along mechanics, and anything giving one investor rights others lack.
Related terms
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