What is a Shareholders Agreement?
A shareholders agreement is a private contract between a company's shareholders that governs their relationship, rights, and obligations. It supplements the company's Articles of Association and provides additional protections.
Our legally sound shareholders agreements include:
- Voting rights and decision-making processes
- Share transfer restrictions and rights of first refusal
- Dividend policies and profit distribution
- Dispute resolution mechanisms
- Exit strategies for shareholders
Why is a Shareholders Agreement Important?
Relationship Management
Establishes clear rules for shareholder interactions and decision-making.
Protection of Minority Shareholders
Safeguards rights of minority shareholders against majority actions.
Transfer Restrictions
Controls who can become a shareholder through transfer clauses.
Dispute Prevention
Reduces conflicts with predefined resolution mechanisms.
Essential Clauses in Shareholders Agreements
Voting Rights
Defines voting thresholds for major decisions
Drag-Along/Tag-Along
Protects during company sale scenarios
Pre-emptive Rights
Right to purchase new shares before outsiders
Right of First Refusal
Right to buy shares before they're sold externally
Deadlock Resolution
Mechanisms for resolving board/shareholder deadlocks
Non-Compete
Restricts shareholders from competing businesses
Types of Shareholders Agreements
Startup Agreements
For early-stage companies with founder and investor protections
Family Business Agreements
For multi-generational family-owned businesses
Joint Venture Agreements
For companies with multiple corporate shareholders
Employee Shareholder Agreements
For employee stock ownership plans (ESOPs)
Our Shareholders Agreement Drafting Process
1. Shareholder Consultation
Understanding all shareholders' concerns and requirements.
2. Business Structure Analysis
Reviewing current shareholding and governance structure.
3. Custom Drafting
Creating agreement tailored to your specific needs.
4. Shareholder Review
Incorporating feedback from all parties.
5. Finalization & Execution
Preparing final version for signatures with notarization.
Transparent Pricing
| Service | Basic | Comprehensive |
|---|---|---|
| Startup Shareholders Agreement | ₹1,999 | ₹3,999 |
| Family Business Agreement | ₹1,999 | ₹2,999 |
| Joint Venture Agreement | ₹5,999 | ₹7,999 |
| ESOP Shareholders Agreement | ₹3,999 | ₹5,999 |
Frequently Asked Questions
Yes, it's a legally enforceable contract between shareholders, provided it doesn't contradict company law or the Articles of Association.
Yes, with consent of shareholders as specified in the amendment clause of your agreement.
Typically yes, unless the agreement specifies otherwise. We recommend all shareholders be party to the agreement.
Articles are public documents filed with ROC, while shareholders agreements are private contracts with more detailed provisions.
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