Shareholders' Agreement

Also called SHA

A shareholders' agreement: a contract among a company's shareholders governing their rights and obligations, voting, transfers, board seats, protective provisions, beyond what the company's charter covers.

Why it matters

The SHA is where investor rights and control terms live after a round, so its clauses shape how much freedom founders keep. Reading and negotiating it carefully, not just the valuation, is essential to understanding a deal.

For example

The shareholders' agreement signed at Series A spells out the investors' board seat, veto rights, and what happens to shares if a founder leaves.

Related terms

Term Sheet Drag-Along Rights Tag-Along Rights

Go deeper

See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.

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