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Investment LLC Operating Agreement for India

Investment LLC Operating Agreement Template for India

A comprehensive legal document structured under Indian law that establishes the operational framework for an Investment Limited Liability Company. This agreement governs the relationships between members, outlines management structures, and defines investment protocols while ensuring compliance with Indian regulatory requirements including the Companies Act, Limited Liability Partnership Act, and FEMA regulations. It details capital contributions, profit sharing, decision-making processes, and investment strategies while incorporating specific provisions for both domestic and foreign investments within the Indian legal framework.

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Investment LLC Operating Agreement

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What is a Investment LLC Operating Agreement?

The Investment LLC Operating Agreement serves as the foundational document for investment-focused limited liability companies operating in India. This document is essential when establishing an investment vehicle that requires structured governance, clear operational guidelines, and defined investment parameters. It is particularly crucial for entities involving multiple investors, professional management, and specific investment strategies. The agreement must comply with Indian regulatory requirements, including the Companies Act, 2013, Limited Liability Partnership Act, 2008, and FEMA regulations for foreign investments. It typically includes detailed provisions for capital contributions, ownership rights, management responsibilities, investment decision-making processes, profit distribution mechanisms, and exit strategies. The document is commonly used by investment firms, private equity funds, venture capital organizations, and other investment-focused entities operating in the Indian market.

What sections should be included in a Investment LLC Operating Agreement?

1. Parties: Identifies all members/investors of the LLC, including their contact details and initial ownership percentages

2. Background: Explains the purpose of forming the LLC and the general intent of the parties

3. Definitions: Defines key terms used throughout the agreement

4. Formation and Name: Details of LLC formation, registered name, and business purpose

5. Capital Contributions: Specifies initial and subsequent capital contributions, valuation methods, and capital accounts

6. Membership Interests: Details the ownership structure, classes of interests, and rights attached to each class

7. Management Structure: Defines management roles, voting rights, and decision-making processes

8. Meetings and Voting: Procedures for member meetings, voting requirements, and quorum rules

9. Distributions and Allocations: Rules for profit/loss allocation and distribution among members

10. Transfer Restrictions: Restrictions on transfer of membership interests and right of first refusal provisions

11. Exit Provisions: Procedures for member withdrawal, buyout terms, and tag-along/drag-along rights

12. Confidentiality: Obligations regarding confidential information and trade secrets

13. Dispute Resolution: Procedures for resolving disputes between members

14. Term and Termination: Duration of the LLC and conditions for dissolution

15. General Provisions: Standard legal provisions including governing law, amendments, and notices

What sections are optional to include in a Investment LLC Operating Agreement?

1. Investment Committee: Required when the LLC needs a formal committee to evaluate and approve investments

2. Advisory Board: Include when the LLC plans to establish an advisory board for strategic guidance

3. Foreign Investment Compliance: Required when there are foreign investors, detailing FEMA compliance

4. Special Purpose Vehicle (SPV) Provisions: Include when the LLC is being formed as an SPV for specific investments

5. Co-Investment Rights: Include when members may have rights to participate in future investment opportunities

6. Key Person Provisions: Required when success depends on specific individuals remaining involved

7. Investment Strategy and Restrictions: Include when specific investment criteria or restrictions need to be formalized

8. Carried Interest: Include for investment LLCs with fund manager compensation structures

What schedules should be included in a Investment LLC Operating Agreement?

1. Schedule 1 - Member Information: Detailed information about each member, including contact details and initial capital contributions

2. Schedule 2 - Initial Capital Contributions: Detailed breakdown of each member's initial capital contribution, including form and valuation

3. Schedule 3 - Shareholding Pattern: Complete ownership structure including all classes of shares/interests

4. Schedule 4 - Reserved Matters: List of decisions requiring special majority or unanimous consent

5. Schedule 5 - Valuation Methodology: Agreed methods for valuing the LLC and membership interests

6. Appendix A - Investment Policy: Detailed investment criteria, restrictions, and decision-making process

7. Appendix B - Management Structure: Organizational chart and detailed management responsibilities

8. Appendix C - Fee Structure: Details of management fees, carried interest, and other compensation arrangements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Ƶ

Document Type

Operating Agreement

Cost

Free to use
Relevant legal definitions
















































































Clauses



































Relevant Industries

Financial Services

Investment Management

Private Equity

Venture Capital

Real Estate Investment

Asset Management

Professional Services

Technology Investment

Infrastructure Investment

Healthcare Investment

Relevant Teams

Legal

Compliance

Investment

Finance

Risk Management

Corporate Governance

Operations

Treasury

Tax

Company Secretarial

Relevant Roles

Chief Executive Officer

Chief Investment Officer

Managing Director

Investment Manager

Fund Manager

Legal Counsel

Company Secretary

Compliance Officer

Chief Financial Officer

Investment Analyst

Portfolio Manager

Risk Manager

Board Director

Managing Partner

Investment Committee Member

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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