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Limited Company Agreement Template for India

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Key Requirements PROMPT example:

Limited Company Agreement

"I need a Limited Company Agreement for a tech startup with three co-founders and two venture capital investors, including provisions for an ESOP pool of 10% and special voting rights for major business decisions."

Document background
The Limited Company Agreement is a crucial document used when establishing or restructuring a limited company in India. It serves as the cornerstone agreement between shareholders and the company, outlining their respective rights, obligations, and relationships. This document is essential for companies seeking to establish clear governance structures, protect shareholder interests, and ensure compliance with Indian corporate law, particularly the Companies Act, 2013. It becomes especially important when there are multiple shareholders, different classes of shares, or when specific management and control provisions need to be established. The agreement typically includes detailed provisions on share transfers, management rights, decision-making processes, and dispute resolution mechanisms, making it a fundamental document for any limited company's corporate governance framework in India.
Suggested Sections

1. Parties: Identifies all shareholders/members entering into the agreement

2. Background: Sets out the context and purpose of forming the company

3. Definitions and Interpretation: Defines key terms used throughout the agreement and interpretation rules

4. Company Formation and Business: Details of company incorporation, business objectives, and main activities

5. Share Capital and Structure: Details of authorized and issued share capital, classes of shares

6. Share Transfer Restrictions: Rules governing the transfer of shares, including right of first refusal

7. Management and Board Structure: Composition of board, appointment/removal of directors, voting rights

8. Shareholders' Rights and Obligations: Key rights and duties of shareholders, including voting and dividend rights

9. General Meetings: Procedures for conducting shareholders' meetings and voting

10. Reserved Matters: Decisions requiring special majority or unanimous consent

11. Finance and Dividends: Financial management, dividend policy, and additional funding provisions

12. Confidentiality: Obligations regarding company and shareholder confidential information

13. Dispute Resolution: Procedures for resolving disputes between shareholders or with the company

14. Term and Termination: Duration of agreement and circumstances for termination

15. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

Optional Sections

1. Tag-Along and Drag-Along Rights: Include when shareholders want exit rights protection

2. Anti-Dilution Protection: Include when there are investors requiring protection against future down rounds

3. Non-Compete and Non-Solicitation: Include when restrictions on competitive activities are needed

4. Intellectual Property Rights: Include when the company has significant IP assets

5. Employee Stock Option Pool: Include when company plans to offer employee stock options

6. Foreign Investment Provisions: Include when there are foreign shareholders or investment

7. Put and Call Options: Include when shareholders want specific exit mechanisms

8. Dead-Lock Resolution: Include when equal shareholding exists between key shareholders

Suggested Schedules

1. Schedule 1 - Details of Shareholders: List of all shareholders with their shareholding details

2. Schedule 2 - Share Capital Structure: Detailed breakdown of share classes and rights

3. Schedule 3 - Business Plan: Initial business plan and objectives of the company

4. Schedule 4 - Reserved Matters List: Comprehensive list of matters requiring special approval

5. Schedule 5 - Board Composition: Details of initial directors and board structure

6. Schedule 6 - Deed of Adherence: Template for new shareholders joining the agreement

7. Schedule 7 - Company Assets: List of material assets owned by the company

8. Schedule 8 - Completion Obligations: Actions to be completed upon execution of agreement

Authors

Alex Denne

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

Relevant legal definitions





















































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Relevant Industries

Technology

Manufacturing

Financial Services

Healthcare

Retail

E-commerce

Professional Services

Real Estate

Infrastructure

Education

Telecommunications

Media and Entertainment

Agriculture

Automotive

Hospitality

Relevant Teams

Legal

Corporate Governance

Board Secretariat

Compliance

Executive Leadership

Corporate Affairs

Finance

Risk Management

Investor Relations

Business Development

Relevant Roles

Chief Executive Officer

Company Secretary

Chief Legal Officer

Corporate Lawyer

Managing Director

Board Director

Chief Financial Officer

Compliance Officer

Corporate Governance Officer

Legal Counsel

Investment Manager

Shareholder Relations Manager

Business Development Director

Risk Management Officer

Corporate Affairs Manager

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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