Shareholder Rights Agreement
Content
Definition
A Shareholder Rights Agreement outlines the rights and protections afforded to shareholders, including voting rights, dividend rights, and protections against dilution. This agreement aims to clarify and safeguard shareholders` interests.
Usage and Context
A shareholder rights agreement outlines and protects the rights of shareholders, including voting and dividend rights.
Frequently asked questions
- What is the shareholder rights agreement? A shareholder rights agreement defines the rights and protections of shareholders, often used to prevent hostile takeovers.
- What is the purpose of the shareholders agreement? A shareholders agreement defines the rights, responsibilities, and relationships of shareholders to protect their interests.
- What are the voting rights in a shareholder agreement? Voting rights allow shareholders to participate in key company decisions, usually based on the number of shares they hold.
Benefits
A shareholder rights agreement clarifies and protects the rights of shareholders, including voting and dividend rights.
Conclusion
A shareholder rights agreement spells out the protections and rights granted to shareholders.
