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by Undo Capital
December 15, 2025
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What Is a Joint Shareholders Agreement?

A joint shareholders’ agreement is a legal contract signed by multiple shareholders that governs their shared rights, obligations and decision-making within a company.

Joint Shareholders Agreement Meaning

The joint shareholders' agreement's meaning centres on collective governance and alignment between co-investors, founders and other key shareholders. To define a joint shareholders' agreement in practice, it sets out rules on voting, share transfers, investor protections, information rights, exit procedures and how disputes are resolved. A clear joint shareholders' agreement definition ensures that all parties understand how control is shared and how key corporate actions must be approved. In venture-backed companies, it stands for coordinated ownership, reduced conflict and structured long-term collaboration.

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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.