Shareholder Agreement Definition

A shareholders` agreement includes a date, often the number of shares issued, a capitalization table (or «cap»), which indicates the shareholders and their percentage of ownership, any restrictions on the transfer of shares, the subscription rights of current shareholders to purchase shares (in the event of a new issue to maintain their ownership share) and details of payments in the event of the sale of a business. A dividend is a share of the company`s profit that a shareholder receives at regular intervals during the year. Dividends are paid per share (for example. B $0.10 per share) and are used to give shareholders a positive return on holding shares. A company can pay any percentage of its profits in the form of dividends, but most pay less than 100%, so the company has assets for investments, business growth, unexpected expenses, or business losses in subsequent years. . . .