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

A shareholders’ agreement is a private legal contract between a company’s shareholders that sets out their rights, obligations and how key decisions will be made.

Shareholders’ Agreement Meaning

The shareholders’ agreement meaning focuses on control, protection and clarity. A clear shareholders’ agreement definition typically covers how shares can be transferred, how disputes are resolved, voting arrangements, information rights, dividend policy and what happens on exit. Unlike the Articles of Association, this agreement is not public and can include tailored, commercially sensitive terms between specific shareholders. In fundraising, a shareholders’ agreement is often introduced or updated to reflect new investor protections and governance rights.

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Disclosure Notice: This communication is issued by Undo Capital Limited (“Undo Capital”) and is provided strictly for informational purposes only. It contains general information and should not be relied upon as accounting, business, financial, investment, legal, tax, or other professional advice. Undo Capital is not regulated by the Financial Conduct Authority (FCA) and does not provide investment, financial, or tax advice. Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. Nothing in this communication constitutes, or should be construed as, a recommendation, offer, or solicitation to purchase or sell any security or financial instrument.
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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.