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Shareholder Resignation Agreement Template for India

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Key Requirements PROMPT example:

Shareholder Resignation Agreement

"I need a Shareholder Resignation Agreement for my exit from a private technology startup, where I hold 15% shares and will be selling them back to the company by March 2025, with payment to be made in three installments."

Document background
The Shareholder Resignation Agreement serves as a crucial legal instrument in Indian corporate practice when a shareholder decides to exit their ownership position in a company. This document becomes necessary when a shareholder wishes to formally terminate their relationship with the company, whether due to retirement, personal reasons, strategic decisions, or other circumstances. The agreement, governed by Indian law including the Companies Act, 2013, provides a comprehensive framework for managing the resignation process, addressing share transfers or buybacks, settling financial matters, and establishing post-resignation obligations. It protects both the departing shareholder and the company by clearly documenting the terms of separation, including confidentiality requirements, non-compete provisions if applicable, and mutual releases from future claims. The agreement also ensures compliance with regulatory requirements and company bylaws while facilitating a smooth transition of ownership.
Suggested Sections

1. Parties: Identification of the resigning shareholder, the company, and other relevant parties

2. Background: Context of the shareholding and circumstances leading to resignation

3. Definitions: Key terms used throughout the agreement

4. Resignation and Effective Date: Formal declaration of resignation and when it takes effect

5. Treatment of Shares: Handling of the resigning shareholder's shares (transfer, purchase, or retention)

6. Consideration: Details of any payment or compensation for the shares

7. Handover of Documents: Process for returning company documents and property

8. Release and Discharge: Mutual release of claims and liabilities

9. Confidentiality: Obligations regarding company confidential information

10. Tax Matters: Handling of tax implications and responsibilities

11. Notices: Process for sending formal communications between parties

12. General Provisions: Standard contractual terms including governing law, jurisdiction, etc.

13. Execution: Signature blocks and execution formalities

Optional Sections

1. Non-Compete and Non-Solicitation: Restrictions on future competitive activities and employee/client solicitation, included when protecting company interests is crucial

2. Continuing Obligations: Any ongoing responsibilities or duties that survive resignation, used when there are lasting commitments

3. Director Resignation: Additional provisions if the shareholder is also resigning as a director

4. Intellectual Property Rights: Provisions regarding IP ownership and rights, included when the shareholder was involved in IP creation

5. Outstanding Loans: Treatment of any loans between the shareholder and company, included when applicable

6. Representations and Warranties: Specific assurances from either party, included in complex resignations

7. Dispute Resolution: Specific procedures for handling disputes, included when standard court jurisdiction is not preferred

Suggested Schedules

1. Schedule 1 - Share Details: Details of shares held, including share certificates numbers and class of shares

2. Schedule 2 - Calculation of Consideration: Method and details of share valuation and payment calculation

3. Schedule 3 - Company Property: List of company documents and property to be returned

4. Schedule 4 - Resignation Letters: Form of resignation letters from various positions (if applicable)

5. Schedule 5 - Share Transfer Forms: Required forms for executing share transfers

6. Appendix A - Board Resolution: Copy of board resolution approving the resignation and share treatment

7. Appendix B - Valuation Report: Independent valuation report of shares (if applicable)

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
Clauses






























Relevant Industries

Technology

Manufacturing

Financial Services

Professional Services

Real Estate

Healthcare

Retail

Education

Media and Entertainment

Construction

Information Technology

Telecommunications

Energy

Agriculture

Transportation

Relevant Teams

Legal

Corporate Secretarial

Finance

Compliance

Corporate Governance

Board of Directors

Risk Management

Corporate Affairs

Investment Relations

Executive Leadership

Relevant Roles

Chief Executive Officer

Company Secretary

Legal Counsel

Corporate Lawyer

Chief Financial Officer

Board Director

Managing Director

Compliance Officer

Corporate Governance Officer

Finance Director

Investment Manager

Risk Manager

Business Development Director

Chairman

Vice President of Legal Affairs

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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