[Legal Info] Why is a Shareholders Agreeemt important when you set out own business?

By far the best way to avoid disputes and stalemate situations in private companies is for all the shareholders to enter into a Shareholders Agreement.

Mr Ji Hoon Chang and Mr. Jun Won Lee, solicitors from the Teddington Source: SBS Radio

Even though there is no legal requirement to have a formal shareholders agreement, every company with more than one shareholder is well advised to have one.

 

Shareholder agreements ensure that the running of the company and the responsibilities of the shareholders are properly thought through, there is clarity and certainty as to what can or cannot be done and decisions are taken by consensus and discussion. As a result, it will reduce the potential for conflict between shareholders and help the company to be run smoothly and profitably.

 

Find out the relevant legal information from the SBS Korean Program.