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Shareholders' agreements: why formalise before a dispute

Rules defined while there is consensus prevent every decision from becoming an argument, and every argument from becoming a lawsuit.

Oct 1, 2026 · 2 min read · Corporate and Partnership Law

When a company is founded, trust between partners often postpones formalisation. A shareholders' agreement exists precisely for the moment when their views no longer coincide.

Topics commonly covered

  • Voting rights and decisions requiring qualified approval
  • Rules for entry, exit and transfer of interests
  • Valuation criteria in case of withdrawal
  • Distribution of profits and capital contributions
  • Each partner's management responsibilities
  • Deadlock resolution mechanisms

Why before a dispute

Negotiating rules while there is consensus is simpler and less costly. Once disagreement sets in, each clause is contested from each party's position.

The right content depends on the type of company, the number of partners and the business goals, and should be built case by case.

Informational content only. It does not constitute legal advice or a legal opinion.

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