The importance of shareholder agreements

A clear and fair shareholder agreement can help prevent unnecessary disputes from arising, explains Hiten Patel, senior associate at KaurMaxwell

Until recently, vehicle manufacturers Renault and Nissan were locked in a complex commercial dispute, seeking to tear up their existing shareholder agreements in order to improve the alliance between the two companies.

After prolonged negotiations, the two companies have now agreed upon a plan to equalise the shareholdings they held in each other. Yet whether companies are corporate giants or small businesses, shareholder agreements invariably play a key role in how companies operate.

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