The shareholders` agreement was introduced to improve business operations related to the operation of the company and to clarify and structure the relationship between the company and its shareholders at any given time. This contributes to the faster resolution of disputes and leads to the smooth and smooth operation of the company and its business operations. A shareholders` agreement creates the ideal conditions for changing the company`s constitution. It is suitable for small and medium-sized enterprises that do not want to formally change the entire Constitution when tiny changes are needed. This agreement contains the details of rights and obligations, the relocation of shares, the definition of the company, the decision-making for the shareholders of the organization. Once contacted, your request to submit a shareholders` agreement will be accepted and our representative will contact you to forward your request. If we need more information from you, we will call you if necessary. Once we have received all your data, our in-house lawyers and legal experts will prepare the draft shareholders` agreement and send it for review within 2-4 business days. The purpose of a shareholders` agreement is to protect the rights and ensure appropriate treatment of the shareholders of a corporation. Compared to the articles of association of companies required under the Companies Act, the shareholders` agreement is an optional agreement concluded between all or part of the shareholders of a company. The shareholders` agreement generally consists of the provisions relating to the rights of the shareholder with regard to the following issues: « This court (in V.B. Rangaraj) considered that the provisions of the shareholders` agreement that provide for restrictions, even if they are compatible with the legislation on companies, will only be approved if they are incorporated into the articles of association, (is) a point of view: which we do not represent. (Therefore, shareholders can enter into any agreement in the best interest of the company, but the only thing is that the provisions of the SHA should not conflict with the AoA.
The essential objective of the SHA is to make arrangements for a correct and efficient internal management of the company. It can visualize the best interest of the company in different topics and can also find different ways, not only for the best interest of the shareholders, but also for the company. « A shareholders` agreement includes such rules where shares cannot be easily transferred and for which the written consent of existing shareholders must be obtained. This does not apply in the event of the death of a member, as the shares are transferred to the family, i.e.; legal representatives/heirs. Shareholders can proceed to obtain the most viable source of financing whenever they believe it is beneficial to the company. The draft shareholders` agreement contains the procedure for obtaining this financing. A shareholders` agreement is a contract between the company and its shareholders. It describes the rights, obligations of shareholders and provisions relating to the management and powers of the company. The purpose of the agreement is to protect the interests of shareholders; especially minority shareholders, i.e.
those who hold less than 50% of the company`s shares. A shareholders` agreement is entered into to resolve all disputes between the shareholders and the Company. We cannot be sure that nothing will ever go wrong, and in such a case where nothing is certain, such agreements help us resolve disputes when they arise and maintain a healthy relationship between shareholders and the company. It also helps protect the investment made by a shareholder and sets the rules and regulations for the shareholders and all other parties associated with the company. It is important to regulate a shareholders` agreement because not all shareholders are the same. An agreement must be developed taking into account that each person is different and has different opinions on the issues or questions in question. And whether or not they may agree with each other. The shareholders` agreement must include the buy-back rights clause, which states that if a shareholder is deemed incompetent due to certain significant events, i.e.; Death, disability, bankruptcy or dissolution of marriage, the company or existing shareholders may purchase the shares of that shareholder in this case.
It also includes a clause called « exclusion » where existing shareholders can exclude any undesirable shareholders and acquire their shares. A shareholders` agreement includes the following basic provisions: Nevertheless, the provisions of the SHA are constantly changing to keep pace with the evolution of the holdings or shareholders. These changes are not always reflected in the AoA, which can obscure their best judgment and be to their detriment. As a result, since the former regime of the Companies Act of 1956 (hereinafter CA, 1956), there has been uncertainty as to the applicability of SHA in Indian courts. As early as 1992, the Supreme Court adopted the sweeping view that share transfer rights under the SHA should also be included in the AoA in order to be legally enforceable. In V.B. Rangaraj v. V.B.
Gopalakrishnan and Ors.,1, the parties included certain restrictions on the transfer of shares in the SHA, which required them to offer shares to the other party before offering them to a foreigner. .