A Shareholders Agreement Precedent is a document that is drafted up between two or more shareholders of a company. This legal agreement outlines the rights and responsibilities of each shareholder, as well as how they will share profits and losses, any voting rights, and dispute resolution methods in the event of disagreement. This formal contract ensures that everyone involved in the agreement stays clear on their roles and obligations for the success of the company. It also helps to ensure everyone is on the same page and can make informed decisions about their investments. With a Shareholders Agreement Precedent, no shareholder has to worry about any potential disagreements or misunderstandings down the line.