In some cases it is useful for the shareholders of a company to prepare a Shareholders Agreement that would regulate in details and personalize, in respect of the law and the bylaws, the management of their company.

The motives to prepare a Shareholders Agreement are diverse. A Shareholders Agreement can deal with management issues that are not regulated by the law or even by the bylaws. Moreover it can be used to agree on specific or complex matters between shareholders. For example a shareholders agreement usually covers the following topics: governance and constitution of Board and committees in a joint-stock company, granting additional rights to minority shareholders over reserved matters, regulating the distribution of dividends and the transfer of shares, identifying events of default that would result in termination, stipulating an exit strategy for an investor including tag and drag along rights.

There are no provisions under Lebanese law concerning Shareholders Agreements. Therefore it should comply with the general provisions applicable to any agreement or contract. Thus a Shareholders Agreement is formed by the sole and free consent of the parties. There is not a specific form or registration required.