What is a Shareholders’ Agreement & Why Every Company Needs One?” ππ€
A classic query from founders and investors — “Isn’t the company’s MOA/AOA enough? Why do we need a separate Shareholders’ Agreement?” π€¨
Well, if you want peace in your boardroom and no boardroom brawls later — this document is your armour! π‘️π
✅ What is a Shareholders’ Agreement (SHA)?
✔️ A legally binding agreement between shareholders of a company
✔️ Defines rights, obligations, voting powers, share transfers, exit terms & dispute resolution
✔️ Acts as a private constitution of the shareholders beyond what’s in the MOA/AOA
#ShareholdersAgreement #SHAIndia #StartupFundingIndia #CompanyLawIndia #InvestorProtection #CorporateGovernance
✅ Why is SHA So Important?
π Prevents shareholder conflicts
π Ensures smooth exit and entry of shareholders
π Secures founders' interest against dilution
π Builds investor confidence and transparency
#StartupIndia #BusinessContracts #CorporateAgreementsIndia #EquityManagement #InvestmentDeals
✅ When Do You Need It?
πΈ Raising capital from investors
π€ Bringing in new partners
π Transferring shares
π Protecting minority shareholders
#FundraisingIndia #VCDeals #PrivateEquityIndia #StartupCompliance #LegalDocumentsIndia
π€£ “Without a Shareholders’ Agreement, you’re basically in a relationship with no boundaries and no break-up clause!” ππ
π Pro Tip: Don’t rely on handshake deals. Write it. Sign it. Seal it. Save your startup from future chaos.
#LegalTipsForFounders #StartupContracts #CorporateLawMatters #LexisAndCompany
π’ Want a rock-solid Shareholders’ Agreement tailored to your business goals? Lexis and Company is here to assist you legally and strategically. πΌ
π Call: +91-9051112233
π Website: https://www.lexcliq.com
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