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Shareholders are the financial backers of a company. They invest in the company by buying shares. By becoming a shareholder you will have rights but also some duties. Some decisions can only be made by the shareholders for example when the company wants to change its’ name or remove a director from office. Shareholders sometimes have different rights, depending on the class or type of shares that they own. An important document that defines these rights and duties is the shareholders agreement. You may want us to take a look at your agreement or to draft one for your company if you are only starting out. If you want to read more about shareholders take a look at our guide. It has heaps of useful information.

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