Why Every SME Needs a Shareholders' Agreement

Many small and medium-sized businesses in Ghana operate for years without a shareholders' agreement, relying instead on the default provisions of the Companies Act. This works until it does not, usually when a co-founder wants to exit, a disagreement arises over strategy, or new investment requires clearer rules.

A well-drafted agreement should address decision-making thresholds, exit and transfer of shares, valuation on exit, and what happens if a shareholder can no longer participate in the business. Putting this in place early, while relationships are good, is far simpler than negotiating it under pressure.