When a seller sells the shares to the purchaser and there is a transfer of shares of any sort in the company then in that case a Shareholders Agreement is been executed. All the terms and conditions relating to the purchase of the shares are mentioned in the Share Purchase agreement and it makes it easy by executing the Shareholders agreement to decide the obligations of the Purchaser and the Seller of the shares of the company.
Clearly defines all the obligations of the purchaser and the seller.
Easily defines the powers, rights and obligations of the purchaser and the seller.
Those companies that so not want to change the initial constitution of the company can benefit from properly defining all the rights and obligations of the Purchaser and the Seller.
This agreement is perfect for small and medium companies.