For those who don’t know, a shareholders agreement is an agreement between the company and some or all of its shareholders.
The purpose of a shareholders agreement is to regulate the association between the company and the shareholders.
In short, a shareholders agreement is a list of rules and given authority that both the company and the shareholders have to abide by.
The StartUp Lab will help you in making shareholders agreement so that your company doesn’t have to face any dispute in the future.
Why a shareholders agreement is needed?
The need for shareholder agreement arises mainly in case of a dispute between the company and the shareholders.
And if such disputes arise, the shareholder agreement helps in resolving that issue.
The shareholder agreement should be in place as soon the company gets incorporated or has started to trade.
It’s better to have a shareholders agreement from the start than negotiating a dispute later when it arises.
What points shareholders agreement includes?
As each company is different in its own ways, shareholders agreement of each company is different.
But there are some points a shareholders agreement generally has
- Shareholder obligations and management rights
- Directorial appointment rights
- Dividends and financing
- Transfer of shares
- Disputes and deadlocks
- Default Strategy
- Exit Strategy
The StartUp Lab is adequately experienced and we know what effective terms should be included in a shareholders agreement.
Following terms, we take into consideration before making a shareholders agreement
- Each agreement that we create is composed in a proportional way.
- Each term in the agreement is made keeping in mind its benefits for both the company and the shareholders.
Call us or email us if you need a shareholders agreement.
It’s better to have a shareholders agreement in the starting than doing negotiations later for settling disputes.