Many Nigerian businesses are formed among friends, family members, or strategic investors with shared enthusiasm and vision. However, when disputes arise over control, profit distribution, or exit rights, the absence of clear contractual arrangements often leads to costly litigation.
A shareholders’ agreement is one of the most important legal safeguards for any company with more than one shareholder.
This article explains what a shareholders’ agreement is, why it is essential under Nigerian law, and the key provisions every company should consider.