Shareholders' agreement

An agreement between a company's shareholders to define how they will vote in general meetings, or in order to establish limits or conditions for the free transferability of their shares (or securities that are convertible or exchangeable for shares). The regulations establish that the conclusion, extension or modification of an agreement of this nature in public listed companies must be communicated immediately to the company itself and to the CNMV, which will disclose it as a significant event. The agreement will have no effect until it has been communicated and published, i.e. until it has been made known to the public. Knowledge of these agreements is relevant for minority shareholders, as their existence will generally determine the most important corporate decisions.