Shareholders Agreements and Forms - Company Shareholder Agreement

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A shareholder is an owner or investor in a corporation. The benefits of being a shareholder includes receiving dividends for each share as determined by the board of directors; the right to vote (except for certain preferred shares) for members of the board of directors; to bring a derivative action (lawsuit) if the corporation is poorly managed; and, to participate in the division of value of assets upon dissolution and winding up of the corporation. A shareholder should have his/her name registered with the corporation, but may hold a stock certificate which has been signed over to him/her. Before registration the new shareholder may not be able to cast votes represented by the shares.