A shareholders' agreement is an agreement among all shareholders that restricts the powers of the directors to manage the corporation.

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A shareholders' agreement is a contract between shareholders that governs their relationship and the way the corporation is managed. It may contain provisions that supplement or modify the corporation's bylaws or articles of incorporation, but it cannot override or negate the authority of the directors to manage the business and affairs of the corporation, as prescribed by law. Shareholders can elect directors and vote on matters that require shareholder approval, but they cannot interfere with the day-to-day operations of the corporation or micromanage its officers or employees. Therefore, a shareholders' agreement cannot restrict the powers of the directors to manage the corporation.

A Shareholders' Agreement Is an Agreement Among All Shareholders That