Shareholder Agreements

Shareholder Agreements

Shareholder Agreements

A shareholder agreement should reduce ambiguity around ownership, control, exits, funding, and dispute management. We assist founders and investors with practical agreement drafting and review based on how the business is expected to operate.

Why Choose Tax Assist Shareholders Agreement?

This organization comprises of expert legal professionals, who use their expertise will draft your shareholder’s agreement that shall cover all the legal requirements and needs of the parties. The experience and the knowledge that our professionals hold can help you in including clauses in the agreement that shall effectively describe the relationship between the parties and company as well as avoid confusion or difficulties in the future.

Advantages of Shareholders Agreement

Improves Clarity:

The agreement involves a detailed description of the nature of work and relationships among shareholders and with the company that will avoid confusion.

Guards the Parties:

The parties express their will, rights, and duties in an agreement which reduces the scope of disputes between the parties in the future.

Proof:

It acts as evidence that expresses the duties and rights which the parties have agreed on.

Scope of Confidentiality:

The Agreement involves clauses that state the compliance with any confidentiality that the parties may prescribe in their contract.

Intellectual Property Rights:

The ownership rights and usage rights of trademark or trade name (if any) will be clearly distinguished in the shareholder's agreement that will establish the rights of parties very clear.

Documents Required for Shareholder Agreement

  • Name and details of parties
  • Date of the agreement
  • Purpose of the agreement
  • Distribution of shares
  • Management and control
  • Shareholding (Before and After)
  • Confidentiality Clause
  • Dividend
  • Director’s loan (if any)
  • Penalties and remedy for non-compliance
  • Provision for transfer of shares
  • Shareholder's rights and duties during the dissolution of the company
  • Signatures of parties

Frequently Asked Questions

What does a shareholders' agreement do?

It sets out the rights, obligations, and decision-making framework between the shareholders and the company, especially for matters that are not practical to leave to informal understanding.

Why is a shareholders' agreement important?

It addresses future ownership and control issues in advance and creates clarity on voting, exits, funding, dispute handling, and management rights.

What provisions are usually included in a shareholders' agreement?

It usually covers ownership rights, board and voting matters, share transfers, funding obligations, founder restrictions, deadlock clauses, and exit provisions.