Shareholders’ Agreement (SHA)
A private contract between shareholders setting out their rights, obligations and protections.
An SHA covers matters like decision-making, share transfers, drag-along and tag-along rights, founder vesting and what happens if someone leaves. Unlike the articles it is private. It is usually signed at a funding round to align founders and investors.
Examples
Co-founders sign an SHA with reverse vesting over four years. — Investors require drag-along rights in the SHA.
How it relates to The Startup Foundry
The Foundry helps founders understand the agreements investors expect, so signing terms with its network is smooth and informed.