Is a Partnership Agreement different from a Shareholders Agreement?

Is a Partnership Agreement different from a Shareholders Agreement?

July 23, 2019

There is no difference between a Shareholder agreement and a Partnership Agreement. The two can be used interchangeably.

Both a Partnership Agreement and a Shareholders Agreement are agreements entered into by two or more persons stating the rights, power, interest and benefits they are entitled to in a business.

A shareholder having acquired shares is a partner in a corporate entity.

Shareholders or Partnership Agreements are detailed agreements and should contain issues such as the number of shares subscribed to by each sub scriber, pre-emptive rights, transfer of shares, voting etc

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