Document background
The Small Business Shareholder Agreement is essential for small businesses in Singapore with multiple shareholders to establish clear governance structures and protect all parties' interests. It becomes particularly important when founding members want to formalize their business relationship, plan for future scenarios, and prevent potential disputes. This agreement should be put in place at the company's formation or when new shareholders join, ensuring compliance with Singapore's Companies Act and related regulations. It covers crucial aspects such as share transfer restrictions, voting rights, dividend policies, and exit mechanisms, providing a solid foundation for sustainable business relationships.
