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Shareholders' agreement

A shareholders' agreement is a private contract between shareholders covering matters the articles do not, and it is not filed at Companies House.

It typically deals with deadlock, what happens when someone leaves or dies, drag-along and tag-along rights, and what a shareholder may or may not do in competition with the company. Being private is often the point — it is the document nobody outside the company gets to read.

Related terms

  • Shareholder — A shareholder owns shares in a company, which carry defined rights: typically to vote, to receive dividends, and to share in capital on a winding up.
  • Articles of association — Articles of association are a company's internal rulebook, governing how directors act, how shares are issued and transferred, and how decisions are made.

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