Document background
A Basic Shareholder Agreement is essential when establishing or formalizing relationships between shareholders in a Singapore company. This document is typically used when multiple shareholders come together to invest in or operate a business, requiring clear guidelines on governance, share transfers, and decision-making processes. The agreement, governed by Singapore law, provides protection for both majority and minority shareholders while ensuring compliance with local regulatory requirements. It's particularly crucial for startups, small-to-medium enterprises, and private companies where shareholders have a direct interest in controlling ownership and management.
