Every shareholder in a company has the right to be informed about the business's financial affairs.
The Shareholders Agreement should define the minimum percentage of dividends that should be distributed each year from profits generated.
If one shareholder is drawing more money from the business than the other shareholders, then this can lead to a dispute. For instance, the majority shareholder might draw a higher proportion of dividends from the business than the other shareholders think is fair.
The Shareholder Agreement should specify the minimum percentage of shareholder votes required for any major decisions on behalf of the company. There should also be a clearly defined list of what such major issues are where Shareholder's Consent is required.
This is particularly important to protect the minority shareholders.