Shareholder Agreement

Who It's For

• Co-founders dividing equity in a startup or an established partnership
• Investors entering a company as minority or majority shareholders
• Businesses onboarding a new strategic, financial, or operational partner
• Companies with existing shareholders who lack a formal governance framework

Why You Need It

Without a shareholder agreement, every dispute over dividends, voting rights, dilution, or a founder's exit is resolved by default Uzbek company law — which almost never reflects what the founders actually intended. The law does not protect minority shareholders from being squeezed out, does not provide drag-along or tag-along rights, and does not create any mechanism for resolving a deadlock. A well-drafted SHA fills all of these gaps, sets the rules before disagreements arise, and prevents disputes from escalating into litigation that can take years and cost more than the business itself.

Risks Without It

• Board deadlocks with no resolution mechanism, paralyzing the company indefinitely
• Minority shareholders legally able to block critical decisions with no deadlock-breaking clause
• Founders unable to exit without agreement from all other shareholders, even after years of disagreement
• No drag-along right means a controlling founder cannot complete an acquisition without a blocking minority
• Dilution disputes with no pre-agreed formula for new share issuances