What is the main purpose of a shareholders' agreement?

The main purpose of a shareholders' agreement is to outline management rights and obligations of shareholders. This type of agreement serves as a foundational document that provides clarity regarding the roles and responsibilities of shareholders in relation to the management of the corporation. It typically includes terms regarding voting rights, the transfer of shares, decision-making processes, and procedures for handling disputes among shareholders. By detailing these elements, a shareholders' agreement helps prevent misunderstandings and conflicts that might arise in the governance of the corporation, ensuring that all shareholders are on the same page regarding their rights and duties.

While increasing the value of common stock, facilitating mergers and acquisitions, and defining the roles of corporate officers can be important aspects of corporate governance, they are not the primary focus of a shareholders' agreement. The key function of such an agreement is to establish the framework for how shareholders interact with one another and the corporation itself, making option B the most accurate choice.