A contract between all or some shareholders of a corporation, setting out their mutual rights and obligations. These agreements are normally used in closely-held corporations, where shareholders owe each other enhanced duties of fair dealing because of the difficulty in selling the shares and the relative ease with which shareholders can violate another shareholder's rights.
an agreement entered into by some, and usually all, of the shareholders of a corporation
A contract between the all or a portion of the shareholders of a corporation, which sets out their mutual rights and obligations. Shareholder agreements are highly recommended for corporations with more than one shareholder.