What is a shareholders’ agreement? It’s a contract between shareholders outlining the rights, responsibilities, and obligations of each shareholder, it provides a framework for the governance of the company, and it ensures a clear understanding between the shareholders about its management, operation and control.

An "Agreement Not to Sue" undertakes that one party won't take legal action against another. In other words, it's a way of ensuring that disputes don’t end up in court. You might encounter this type of agreement in many different situations, such as in a business setting, a family dispute, a neighbour dispute, or even between friends.