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Shareholders' Agreement
(15% Off on total bill)

What is a Shareholders' Agreement?

A Shareholders' Agreement is a contract that stipulates obligations, rights, and protections among shareholders or business owners. The Shareholders' Agreement in general outlines agreements about company stocks, protection of shareholder's rights, company leadership, and management rights linked to onboarding and off-boarding, as well as choices regarding future shareholders' rights and interests. Moreover, it gives minority shareholders more of a voice. Typically Shareholder Agreement includes details of sweat equity, drag and tag-along rights, appointments of directors and auditors, financial details of the corporation, transfer, and allotment of shares, valuation of shares, and dealing with the death, disability, bankruptcy, or termination of a shareholder's term, etc.

All About Shareholders Agreement

Why do you need a Shareholders' Agreement?

Sets Established Roles
There is a distinction of authority from the Shareholders' Agreement. The respective roles and powers of the shareholders are underlined in the Shareholders' Agreement. Furthermore, there can be some form of control over the affairs of the company.
Provides Clarity
There is a distinction made between minority and majority stockholders and thus their rights and obligations are divided. Having a Shareholders’ Agreement, essentially, provides clarity and provisions on it, therefore, protecting rights and reducing ambiguity.
Provides Basic Restrictions
Specific forms of provisions and restrictions related to the transfer of shares would be mentioned in the Shareholders' Agreement. The Shareholders' Agreement would also address specific permission relating to such transactions.
Control Over the Company
A Shareholders' Agreement clearly defines the roles of each shareholder and management of the affairs of the company. The shareholders have the power to appoint directors, CEO, etc all as mutually agreed by the shareholders.

Documents / Details we need

Names and References
Details of the Shareholders who will be Parties to the Shareholders’ Agreement
Shareholder's Information
Identity proof(Driving License/Voter ID Card/Passport) and Address proof
Registered Office Details
Documents of the Registered Office of the Company based on its registration status.
Company Details
A brief description of the company's primary business and its operations.
Share Capital and Policy Details
The amount invested by each partner along with the percentage they own in the company with policy details
Business Conduct Information
Includes details of board meetings, decision makings, duration of the agreement, the process of transfer of shares, details on resolving the disputes

Important Clauses

Appointment of Directors
This clause allows the shareholders to define the structure of the Board of Directors. This clause also outlines the duties and functions of the Directors of the Company.
Anti-Dilution and Pre-Emptive Right
Any new share issuance (pre-emptive right) or exiting shareholder's shares (right of first refusal) must be offered to existing shareholders first before being sold.
Management of the Company
This clause ascertains the roles and responsibilities of the board of directors to manage the affairs of the company.
Drag-Along and Tag-Along Right
When one party wants to sell the business but the other does not, drag-along and tag-along provisions might aid.
Liquidation Preferences
The liquidation preference dictates who gets paid first and how much they get paid when a company must be liquidated.
Sweat Equity
This clause preserves the minority shareholder's right to share purchase in the event of dissolution.

What's the process ?

1. Assessment
Our team will reach out to you to obtain the necessary information to assess the SHA’s scope and rationale, as well as any other relevant pieces of information.
3. First Ready Draft
We will complete the first draft of the SHA and email it to you for approval within 48 hours. Following approval, any necessary adjustments will be made and submitted to you on the agreed next date.
2. Due Diligence & Drafting
Once we receive the information, we will begin drafting the agreement from scratch, including defining the reason for the SHA, each party's roles, rights, obligations, powers, usage, and consequences/ breach among other important clauses that will vary depending on the needs of each client.
4. Final Agreement
With a high-quality team of professionals, the entire process of creating the draft and delivering the final copy of the SHA will be accomplished in 72 working hours.
1. Assessment
Our team will reach out to you to obtain the necessary information to assess the SHA’s scope and rationale, as well as any other relevant pieces of information.
2. Due Diligence & Drafting
Once we receive the information, we will begin drafting the agreement from scratch, including defining the reason for the SHA, each party's roles, rights, obligations, powers, usage, and consequences/ breach among other important clauses that will vary depending on the needs of each client.
3. First Ready Draft
We will complete the first draft of the SHA and email it to you for approval within 48 hours. Following approval, any necessary adjustments will be made and submitted to you on the agreed next date.
4. Final Agreement
With a high-quality team of professionals, the entire process of creating the draft and delivering the final copy of the SHA will be accomplished in 72 working hours.

Why choose us

PERSONALISED SERVICE

A dedicated Case Manager ensures quick turnout to all your queries and tailored solutions that fit perfectly for your requirements.

72 HOURS DELIVERY

All your drafting queries are addressed, understood, and delivered with quality under 72 Hours.

EXPERIENCED TEAM

Our team of dynamic professionals is well experienced and extremely proficient to cater to your needs, ensuring the best service.

24/7 HELPLINE

We are available to address and clarify all your queries round the clock. So you can worry less and focus more on the business.

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