Shareholders Agreement services

Get a well-drafted Shareholder’s Agreement services for determining the liaison between a company’s shareholders and business, and to curtail all your legal hazards and avoid Litigations.

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Overview Of Shareholders Agreement

A shareholder’s agreement determines the relationship between the owners of the business or company. A shareholder’s agreement in India includes the rights and duties, the reallocation of shares, business operations, and how important verdicts and decisions are made.

The objective of a shareholder agreement is to provide equal protection to all shareholders and to enable them to decide whether to become shareholders in the future. A shareholder agreement emphasises the majority shareholders’ commitment to safeguard minority shareholders from exploitation and give them a voice when crucial decisions are made, which is why minority shareholders value it more than majority shareholders do.

Shareholders Agreement

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A shareholders’ agreement is a legally binding contract that outlines the regulations used to run a corporation. This agreement, also called a stockholders’ agreement or SHA, is used to protect the interests of each individual shareholder and establish a fair relationship within the company.

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A careful analysis of any deal is extremely critical while any Investment related document is drafted. We help you negotiate the right structure, investment strategy and accordingly draft a deal which covers the rights and obligations of the founders, Investors and the Company.

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Benefits of a Shareholders Agreement

There are mainly two benefits of Shareholders Agreement:

  • It establishes authority.

A shareholder agreement in India clarifies a shareholder’s authority and standing, as well as the licence you hold as the issuer of such shares, by describing the power and risks for all. Furthermore, it acts as a gatekeeper in the interaction between small and large shareholders.

  • Making changes is simple.

A shareholder’s agreement creates the ideal conditions for amending the company constitution. It is appropriate for small and medium-sized businesses that do not want to change the entire constitution whenever minor changes are required.

 

Shareholders Agreement Include

Before finalising the shareholder agreement, ensure that all necessary provisions are included by reviewing the shareholder agreement.

1.  Right of Shareholders

  • The right to vote.
  • The right to appoint directors and the company auditor.
  • The right to call a general meeting.
  • Right to inspect the company’s books and registers as well as its financial statements.

2. Regulations governing the transfer and sale of the company’s shares

A shareholders agreement must include certain rules to protect the shareholders’ interests in the transfer and sale of the company’s shares. Such rules would ensure that a sale or transfer occurs only after the parties involved have given their mutual consent.

3. The company’s financial requirements

When shareholders believe it will benefit the company, they can proceed to obtain the most viable source of funding. The procedure for obtaining such funds is outlined in the draught shareholder’s agreement.

4. Minimum quorum requirements
The shareholder agreement will specify the quorum requirements (the minimum number of members required to constitute a valid meeting).

5. Methods for Valuing the Company’s Shares

Given the market’s frequent fluctuations, proper valuation of company shares is critical to the company’s fortunes. In India, the valuation methods and approaches are precisely laid out in the shareholder’s agreement.

6. Operating Procedures for the Company
In India, the shareholder’s agreement would include guidelines, policies, and procedures to ensure the smooth operation of the company on a daily basis.

7. Liability of Shareholders

Shareholders have limited liability with the company and are not directly liable for its actions. The shareholders’ liabilities are clearly defined in the agreement.

8. Minority shareholder protection
The rights of minority company shareholders are outlined in the shareholder agreement, according to the provisions of the 2013 Companies Act. The agreement will safeguard minority shareholders in the event of mismanagement, oppression, or piggybacking (the sale of shares by the majority shareholders).

 

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Testimonial
Based on 25 reviews
binen
binen
2022-04-08
Pooja Terwad was quite responsive and patient enough in dealing my case. Also due to the current situation , she adjusted her schedule to suit my needs and we could do most of our discussion online which was time saving. Thank you so much for all the help that you done for me
Saurabh Agnihotri
Saurabh Agnihotri
2022-04-06
For a startup there are too many things for founders to focus on. Thankfully startup gig reduces your burden for host of services related to legal and compliance and let’s you focus on your core work. It has been a very fruitful relationship for us.
nandini issar
nandini issar
2022-01-17
I had discovered the start up gig on Google while I was looking for a corporate legal advisor..And called up a few out of which found Ms pooja terwad very good .Not only was she prominent in responding but also gave a patient hearing to my case during the meeting..I am very satisfied with the services and correct guidance regarding my legal issues.. would highly recommend for corporate matters ..
Parizad Sidhwa-Kampani
Parizad Sidhwa-Kampani
2022-01-14
Startup Gig team under Pooja’s leadership is capable, super efficient and responsive. Apart from subject matter expertise, their vast experience across core and allied matters provides valid candid inputs and clear guidance for decision making and risk assessment. Look forward to a long association with Pooja.
Shrivatsa Vakil
Shrivatsa Vakil
2022-01-14
I hired Pooja to conduct due diligence on a company I wanted to invest in. And her work was absolutely comprehensive. She did it not only in a timely manner, but the report presented by her exceeded expectations. She delved into the smallest details of the company and gave me amazing feedback. Beyond that, she is extremely responsive and professional and it is my pleasure to conduct more of my legal work through The Startup Gig.
Gunjali Kothari
Gunjali Kothari
2021-07-27
I remember reaching out to Pooja over a call for an urgent delivery and work, and she not only came to meet and kick started the whole process in a day. Extremely professional and helpful and very diligent team. Kudos and cheers
NIKUNJ ARORA
NIKUNJ ARORA
2021-07-26
It’s been more than four (4) months since I have been interning under PTA. I’m grateful to Pooja ma'am for giving me this opportunity. Dealing with complex agreements, due diligence, legal research, etc. has been part of my internship. Professionalism, high-quality, ethical standards, a vast amount of knowledge, expertise in handling start-ups, handling and communicating with clients effectively are the key highlights of PTA.
arjun chadha
arjun chadha
2021-07-26
Best service providers and very quick in response. Really loved the all services. Thanks for the part of The Zero Games Cheers, Arjun Chadha CEO The Zero Games Pvt ltd