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Shareholding Agreement India

The authorized capital of the company, the amount of shares to be acquired by the investor and the paid-up share capital of the company are fixed in the shareholder contract. In addition, a clause could also be inserted to ensure that the company does not have any other capital without the agreement of both shareholders. The rights of minority shareholders under the provisions of the Companies Act 2013 are set out in the shareholders` agreement. The agreement will guarantee the protection of minority shareholders in the event of mismanagement, repression or piggy backing (sale of shares by majority shareholders). […] Shareholders enter into a social contract with the company for the purchase of their shares and have the rights and obligations defined for the settlement of disputes. The main provisions of a shareholders` agreement are available here. .