Enforcement Of Co-founder Cum Shareholder Agreement

Is It possible to enforce a Co-founder cum Shareholder Agreement among the Co-founders of the company, including all the Voting Rights, Drag Tag Clauses And Vesting Cliff Clauses for Co-founders of a Company? I Have Seen That enforcing such a documen... Read More

Is It possible to enforce a Co-founder cum Shareholder Agreement among the Co-founders of the company, including all the Voting Rights, Drag Tag Clauses And Vesting Cliff Clauses for Co-founders of a Company? I Have Seen That enforcing such a document needs amendment In the AOA of the company? Can Such clauses be implementable? 1. We will follow a vesting and cliff policy as listed below: For Full Time: Three year vesting and one year cliff For Part Time: Nine year vesting and two year cliff For Conversion from Part Time to Full time or Vice versa: The policy as per the new assignment will change accordingly. 2. When taking Salary Part time founders will take 1/3rd of the salary compared to full time founders. Authorized cap - 10 Lakhs Paidup Cap - 1 Lakh No of Share - 10 Lakh Each Share - INR 1 no. of cofounders - 5 division - 20k Shares each - 20% control
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Answer (1)

Team Legistify

Team Legistify

  • Sector-1, Noida

According to section 5 of Shareholder Agreement Act -There are no limits specified under Indian law to restrict the term of shareholders’ agreements. The term of the shareholders’ agreements is at the discretion of the shareholders entering in to the shareholders’ agreements.

Answered on 28 Sep 2018


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