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There are many advantages to entering into a shareholders' agreement, including:
Whilst in general there are no disadvantages to having a shareholders' agreement, there are some issues that need to be considered before entering into one. The shareholders' agreement must be consistent with the company's articles and any subsidiary agreements such as loan and guarantee agreements. In addition, careful consideration is required to establish whether or not the company itself should be joined as a party to the shareholders' agreement.
All of these practical issues translate into a single consideration: whether or not the legal costs are worth the benefit of certainty and protection that the shareholders' agreement provides.