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Shareholders Agreement


A shareholder agreement is a contract between a company and its shareholders. It outlines the shareholders' rights and obligations, as well as provisions relating to the company's management and authorities.
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Overview

A shareholder's agreement often includes clauses relating to the shareholder's rights in the following areas:
  • Voting rights
  • Calling a General Meeting as a legal right.
  • The authority to approve or reject certain decisions made by the board.
  • Right to choose an auditor for the company.
  • Right to have copies of the company's financial statements.
  • Inspection of the company's registers and books.
A shareholders' agreement includes a date; often the number of shares issued; a capitalization table that outlines shareholders and their percentage ownership; any limits on transferring shares; pre-emptive rights for present shareholders to purchase shares in order to maintain ownership percentages; and payment information in the event of a corporate sale.



Benefits of Shareholders Agreement

There are several benefits to having a shareholders’ agreement:

Checklist/Requirements

Key Deliverables

  1. Initial SHA draft
  2. Finalized Shareholders agreement


Shareholders Agreement

Why Choose Us

  Entrepreneur Friendly

We make the process so easy and fast that you will not even feel the headache of all the paperwork, and our professionals will provide you all the promised deliverable within a given span of time.

  Experienced Professionals

All our professionals are qualified and specialized in that particular work. Making sure no mistakes are done at the time of filings with the authorities so that company won’t have to pay any penalties due to mistakes.

  One Stop for All Your Requirements

We support you throughout the journey of your business, from the incorporation, Accounting and taxation support, Secretarial compliance support, and Legal support.

  Cost-Effective

We believe that cost plays a vital role in any company’s growth stage, that’s why we do not surprise our clients with hidden charges, you pay what you see in the initial proposal.


Frequently Asked Questions


What is the pointer that needs to be kept in mind while drafting a shareholder’s agreement?
  • It is essential to understand the objective of the Shareholders' Agreement, as well as the importance of achieving a balance of interests.
  • To avoid any additional misunderstanding, the agreement's provisions must be explicitly defined.
  • The company's and shareholders' rights, responsibilities, and obligations must be clearly stated.
  • The agreement's policies, processes, and guidelines must be concise and consistent.
  • All statements made in the agreement must be addressed in line with the applicable legislation.
  • Shareholders are not accountable for the company's actions.
  • Shareholders are only liable for unpaid share capital on the shares they own.
  • In the case of a limited-by-guarantee company, the shareholder is only accountable for the amount guaranteed by him/her.
    • The shareholders' agreement ensures that shareholders are treated properly and that their rights are safeguarded.
    Termination of shareholders agreement is done as per the termination clause of the agreement. It is usually no longer binding when the shareholder no longer continues to be a shareholder of the company.
    Shareholders agreement may be amended with the mutual consent of the parties in accordance with the terms of modifications mentioned, if any in the original agreement.
    A new agreement shall be entered there upon accordingly which shall be binding on the parties.
    A shareholder agreement should be duly signed by all the parties to the agreement.
    The parties to the agreement along with 2 witnesses may sign the shareholders agreement
    Shareholders agreement gives details w.r.t the rights, duties, responsibilities and roles of shareholders and company. It mitigates the confusion and aids in resolving disputes, if any.