Shareholders' Agreement

If you form a partnership, you sign a partnership agreement. If you get married, you might sign a pre-nup. A shareholder agreement fills a similar role; it's the document outlining a shareholder's relationship with a company.

The document includes a list of the rights of shareholders, along with details about the company. It also outlines the number of shares issued, and provides information about the shareholders, including how much they own.

If you're the CEO of a company and have a fight with a major shareholder, and then see them a few minutes later poring over their shareholder agreement, you might be in trouble. Just like if you see your spouse intently reading the pre-nup, it, uh...could mean lawyers might be getting involved soon.