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Shareholders Agreement Transfer Of Shares
"I need a Shareholders Agreement Transfer of Shares for my tech startup in Bangalore, where three founding shareholders are selling 15% of their shares to a venture capital investor, with specific focus on including tag-along rights and anti-dilution provisions."
1. Parties: Identification of all shareholders and the company as parties to the agreement
2. Background: Context of the agreement, including company details and existing shareholding pattern
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Share Capital and Shareholding Pattern: Details of authorized, issued, and paid-up capital, and current shareholding structure
5. Transfer Restrictions: General restrictions on transfer of shares, including lock-in periods and transfer procedure
6. Right of First Refusal: Process and terms for existing shareholders to purchase shares before they can be offered to third parties
7. Board Composition and Management: Structure and composition of the board, voting rights, and management provisions
8. Reserved Matters: List of decisions requiring special majority or unanimous consent
9. Exit Rights: Mechanisms for shareholders to exit the company, including put and call options
10. Term and Termination: Duration of the agreement and circumstances for termination
11. Confidentiality: Obligations regarding confidential information
12. Dispute Resolution: Mechanism for resolving disputes between shareholders
13. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction
14. General Provisions: Standard clauses including notices, amendments, and severability
1. Tag-Along Rights: Right of minority shareholders to join in the sale of shares by majority shareholders - include when protecting minority interests
2. Drag-Along Rights: Right of majority shareholders to force minority shareholders to join in the sale - include for potential future exits
3. Pre-emptive Rights: Rights of existing shareholders to maintain their percentage ownership in future share issues - include for growth scenarios
4. Foreign Investment Compliance: Specific provisions for compliance with FEMA and foreign investment regulations - include when foreign shareholders are involved
5. Share Valuation Mechanism: Detailed methodology for share valuation - include when specific valuation methods are agreed
6. Dead-Lock Resolution: Specific procedures for resolving board or shareholder deadlocks - include for equal shareholding situations
7. Anti-Dilution Protection: Protection against dilution of shareholding - include for investors requiring such protection
8. Information Rights: Specific rights regarding access to company information - include for minority shareholders requiring additional protection
1. Schedule 1 - Details of Shareholders: Complete details of all shareholders including address, shareholding, and contact information
2. Schedule 2 - Share Capital and Shareholding Pattern: Detailed breakdown of company's share capital and shareholding structure
3. Schedule 3 - Reserved Matters: Comprehensive list of matters requiring special approval
4. Schedule 4 - Transfer Process: Detailed procedure for share transfers including forms and timelines
5. Schedule 5 - Deed of Adherence: Format for new shareholders to become party to the agreement
6. Schedule 6 - Board Nomination Rights: Details of each shareholder's right to nominate directors
7. Schedule 7 - Valuation Methodology: Detailed methodology for share valuation if agreed upon
8. Appendix A - Key Definitions: Detailed definitions of technical terms used in the agreement
Authors
Technology
Manufacturing
Financial Services
Real Estate
Healthcare
Retail
Professional Services
Education
Energy
Infrastructure
Transportation
Media and Entertainment
Telecommunications
Agriculture
Mining
Legal
Finance
Corporate Secretarial
Compliance
Corporate Governance
Board of Directors
Shareholder Relations
Risk Management
Corporate Affairs
Investment Relations
Chief Executive Officer
Chief Financial Officer
Company Secretary
Legal Counsel
Corporate Lawyer
Investment Manager
Mergers & Acquisitions Director
Compliance Officer
Board Director
Managing Director
Shareholder Relations Manager
Corporate Governance Officer
Finance Director
Business Development Director
Risk Management Officer
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