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Prenuptial pacts: Guardian of shareholder wealth

These agreements are especially relevant to protect the wealth of business families in the event of a divorce. In the context of listed companies owned by business families, prenups can be used to protect shareholder wealth by ensuring that the ownership and control of the company remain with the family. This can help prevent the unintended consequence of shares of the promoter family getting into third parties hands, which could hurt the companys performance and stock price. ....

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