This agreement carries the details of rights & duties, reallocation of shares, the definition of
business, and decision making for the shareholders of the organization.
Our lawyer-drafted shareholder’s agreement ensures that your contract is written to your specifications.
The first draft will be shared in 5-6 business days
We will allow you to make two iterations to the draft at no extra cost!
A shareholder's agreement is just a contract determining the liaison between the shareowners of a business or a company. A shareholder's agreement in India comprises the rights and duties, reallocation of shares, operations of the business, and how crucial verdicts and decisions are made.
A shareholder agreement's purpose is to protect and treat shareholders equally, as well as to allow them to make decisions about third parties who may become shareholders in the future. A shareholder agreement is more important to minority shareholders than it is to majority shareholders because it emphasizes the majority shareholders' commitment to protect minority shareholders from abuse and provide them a voice when important decisions are made.
A shareholder's agreement India clears the authority and standing of a shareowner and the license you stock as the issuer of such shares by characterizing the power and risks for all. Additionally, it mediates as a governor of the interaction between small and big shareholders.
A shareholder's agreement facilitates the perfect conditions for making amendments to the company constitution. It is suitable for small-scale and medium businesses that do not wish to officially change the entire constitution whenever minute changes are required to be made.
Certain rules need to be incorporated in a shareholders agreement India to protect the shareholders’ interest with regards to the transfer and sale of company shares. Such rules would ensure that such a sale or transfer happens only after receiving the mutual consent of the parties associated.
Shareholders can proceed to obtain the most feasible source of funding, whenever they think it to be beneficial for the company. The shareholder's agreement draft includes the procedure to obtain such finances.
The shareholder's agreement will mention the requirements related to a quorum (the minimum number of members required to constitute a valid meeting)
Considering the frequent fluctuations in the market, proper valuation of company shares is extremely important for the fortunes of the company. The valuation methods and approaches are laid down precisely in the shareholder's agreement India.
The shareholder's agreement would contain the guidelines, policies, and procedures to ensure the smooth running of the company on a day-to-day basis.
Shareholders only have limited liability with the company and are not liable directly for the activities of the company. The liabilities of the shareholders are defined clearly in the agreement.
The rights of the minority shareholders, as per provisions of the Companies Act, 2013, are laid down in the shareholder's agreement. The agreement will ensure the protection of the minority shareholders in the event of mismanagement, oppression, or Piggy Backing (sale of shares by majority shareholders).
A company may have majority and minority shareholders. A shareholder's agreement states the role and protects the rights of minority shareholders, within a company.
A minority shareholder will have access to purchasing shares from other shareholders, just like a majority shareholder.
A shareholder's agreement will ensure that shareholders will have legal association with the company, including setting or modifying rules and guidelines.
Shareholder's agreement ensures the position or roles of shareholders, within a company, is protected.
Restrictions on matters that can be decided by shareholders can be included in the agreement.
While the articles of association are made public, the terms of a shareholder's agreement is private.
A company may have majority and minority shareholders. A shareholder's agreement states the role and protects the rights of minority shareholders, within a company.
A minority shareholder will have access to purchasing shares from other shareholders, just like a majority shareholder.
A shareholder's agreement will ensure that shareholders will have legal association with the company, including setting or modifying rules and guidelines.
Shareholder's agreement ensures the position or roles of shareholders within a company is protected.
Restrictions on matters that can be decided by shareholders can be included in the agreement.
While the articles of association are made public, the terms of a shareholder's agreement is private.
Note: Your original price includes two rounds of iterations. Therefore, if you need any changes done to the shareholder's agreement format, our lawyers will do the needful and send it across to you for your approval once again.
A shareholder's agreement protects a shareholder's investment in the company while also establishing a fair relationship among the shareholders. Thus, it is critical that the agreement be detailed and include all relevant information.