Shareholder’s Agreement (SHA) is an agreement that is entered into between the shareholders of the company and the company itself. This governs the relationship between the shareholders of the company.
2356 People purchased
Shareholder Subscription Agreement
Shareholder’s Agreement (SHA) is an agreement that is entered into between the shareholders of the company and the company itself. This governs the relationship between the shareholders of the company.
2356 People purchased
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Shareholder Subscription Agreement (SHA)
A shareholder subscription agreement, is an arrangement between shareholders and the company, defining how a company should be operating and outlines shareholders' rights and obligations. The agreement also includes information on the management of the company and privileges and protection of shareholders rights.
Contents of Shareholder's Agreement
The following clauses form part of a well drafted SHA:-
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Type of security issued/purchased
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Conversation rate of convertible securities
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Veto rights
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Founder’s lock-in
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Drag along
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Tag along
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Right of first refusal (ROFR)
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Right of first offer (ROFO)
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Reps & Warranties
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Exit rights
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Governing law and Dispute Resolution
Laws governing the Shareholder's Agreement in India
The different laws which govern various aspects of Shareholder's Agreement in India are as follows:
- Companies Act, 2013 and various rules framed thereunder
- The Indian Contract Act, 1872
- Foreign Exchange Management Act, 1999
- Consolidated FDI Policy, 2020
- RBI Policies
- Competition Act, 2002
- SEBI Guidelines (in case of listed company)
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- Senior Corporate Expert Lawyers: We will get your document drafted/reviewed by Senior Expert Corporate lawyers. You can track the progress of your document on our platform at all times.
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Deliverables
Our standard deliverables for every document drafting includes:
- 60 Minutes of Talk-Time with the Lawyer for drafting/reviewing the Agreement
- First draft of the documents will be delivered to you within a maximum of 2 working days
- Post-delivery of the first draft – Iterations in the master Document to incorporate your suggestions/changes
Startup Documents
Shareholder Subscription Agreement
₹14999
₹ 28999 (66% Off) ₹16000 SaveGross Total
₹14999
Deliverables *
a) Detailed call with Startup Expert Lawyer to understand your company structure.
b) Detailed drafting of the Share Holder's agreement.
c) Call with Key Shareholders to explain them the key clauses.
d) Final Draft of the shareholder's agreement delivered within 5 working days.
e) Two iteration shall be included in this if there are any feedbacks post finalising the document.
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Frequently Asked Question
What is the importance of Shareholder’s Agreement?
A Shareholder's Agreement (SHA) is an agreement that governs the rights and obligations of the shareholders of the company inter se. All your important rights in a company, such as type of securities, conversion rate of convertible securities, veto rights, anti-dilution rights, right of first refusal (ROFR), right of first offer (ROFO), drag along rights, tag along rights, other exit rights, etc. are all mentioned in the SHA.
How do you use Shareholder’s Agreement?
Whenever you are entering into any investment transaction where you are purchasing the shares of a company (either through buying shares through existing shareholders or subscribing to new shares), you should enter into an agreement called SHA.
In order to give effect to the terms of SHA, amendment to the Articles of Association (AoA) post investment, is pertinent.
What is the difference between Shareholders Agreement, Share Subscription Agreement and Share Purchase Agreement?
A Shareholders Agreement (SHA) is an agreement that governs the relationship between the shareholders inter se. It enumerated the important rights and obligations of the shareholders.
A Share Subscription Agreement (SSA) is an agreement between a new investor and the company by which the company issues fresh securities to the investor.
A Share Purchase Agreement (SPA) is an agreement that is entered into between a new investor and an existing (or exiting) investor. By the virtue of SPA, the existing investor transfers the whole or a part of its shareholding in favour of the new investor.
In contrast therefore, in an SSA, new securities are being issued to the investor and in case of SPA, an existing investor is transferring his shareholdings to the new investor. The company is just a passive party in case of SPA. However, in SSA, the company is the active party. A SHA, on the other hand, is entered into either case, i.e. whether new security is being issued or the security is being transferred.
What our users have to say
I was raising a seed round a few months back; LegalKart team support was very helpful and the Startup expert not only helped me with the perfect shareholder agreement draft but I am still have LegalKart minutes in my phone number so that I can consult as and when I want. Great tech innovation.
Priyanka Dubey , New Delhi
I was investing with couple of my friends in a startup and we were in search of an experienced professional who can help us with an impeccable Shareholders agreement. We had a very good experience with LegalKart, their drafting and delivery is just perfect. I recommend LegalKart to every startup.
Prasad D S, Hyderabad
We are a small fintech startup and LegalKart's expert were helpful in getting our Share holder's agreement well in time with all the important clauses to protect our interests along with our investors.
Varun Grover , Bangalore
Our Clients
Shareholder’s Agreement (SHA) is an agreement that is entered into between the shareholders of the company and the company itself. This governs the relationship between the shareholders of the company.
2356 People purchased
Startup Documents
Shareholder Subscription Agreement
₹14999
₹ 28999 (66% Off) ₹16000 SaveGross Total
₹14999
Deliverables *
a) Detailed call with Startup Expert Lawyer to understand your company structure.
b) Detailed drafting of the Share Holder's agreement.
c) Call with Key Shareholders to explain them the key clauses.
d) Final Draft of the shareholder's agreement delivered within 5 working days.
e) Two iteration shall be included in this if there are any feedbacks post finalising the document.