Shareholder Agreement

A Shareholder' agreement is a legal document of a business describing the rights, responsibilities and privileges of a shareholder. The agreement also includes the price of shares, the percentage of shareholder’s ownership in business, provisions relating to transfer of shares, dispute resolution, etc.

The agreement must be vetted by an experienced lawyer who can scrutinise the document for any errors and can identify any inaccuracy or exclusions. The lawyer can suggest the changes that must be made to protect the interest of investors as well as the business.

Shareholder Agreement Review
At INR 2999

What You'll Get In The Package

Inclusion

  • Telephonic consultation with the lawyer for 20 minutes.
  • Review of the Shareholder Agreement.

Exclusion

  • Additional documentation work for the agreement.

Documents required to draft a Shareholder Agreement

  • The drafted Shareholder Agreement.
  • Other important information or document required for vetting of SHA.

Procedure to draft a Shareholder Agreement

Once the Shareholder Agreement is submitted and sent to the lawyer, the lawyer reviews the shareholder agreement and sends their suggestions. Necessary changes can be made by the business before the Shareholder agreement is signed.

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FAQs

What is the meaning of share?
A share is a part in the company's ownership for which the share's owner gets a part of company's profits.
Who is a shareholder?
A shareholder is any person who holds some stock/share of the company. Whenever the company earns profits, the share value of the product increases and the Shareholder gets a part of the company's profits. A shareholder also holds the right to vote on how the company would be managed.
Why do I need a lawyer to review Shareholder agreement?
A Shareholder agreement must be reviewed by an experienced lawyer who can evaluate a Shareholder agreement on the basis of all the requirements of a business and suggest all the requisite changes relating to any amendment or omission in the agreement.
What is a share subscription agreement?
A share subscription agreement sets out how many shares are being issued, if shares are subjected to any conditions such as vesting, subscription price of those shares, when the startup will issue the shares, etc. It also includes company representations and warranties.
Why is a Shareholder agreement needed?
If there are 2 or more Shareholder of a company, it is recommended to have a Shareholder agreement in place for the protection of both the Shareholder as well as the company. A written document can be used in case of any legal disputes that may arise in future relating to the management of company, violation of shareholder’s rights or any other legal disagreement.
What are the rights of a shareholder?
The rights of a shareholder include the right to make changes to MOA or AOA, transfer shares, receive dividend, protect minority Shareholder, appoint directors, take legal action against the director, etc.
What are the duties of a shareholder?
The Shareholder has a duty to participate in the general meetings, consult on the matters of finance and look over the management of the company.
What information must be there in a Shareholder agreement?
A Shareholder agreement includes the details regarding who can be a shareholder, who can serve on the board of directors, price and number of stocks, privileges of a shareholder, etc. However, the clauses of a Shareholder agreement depend upon the specific requirements of a business.