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    What is a shareholder’s agreement?

    A shareholder's agreement simply governs the relationship between the shareholders of the company. The agreement outlines their rights and accountability, how the company is going to run, how shares are transferred, and how decisions are going to be made.

    Shareholder's Agreement Process:

    2 Working days:

    As soon as you send us your request, one of our representatives will get in touch with you to know more on your requirements. If any further details are required, we will get back to you again. Once these requirements are done from our end, we will send them to you for review; this will hardly take 3-4 working days.

    2 Working days:

    In case you would like to make any changes in the agreement, our lawyers will work on them immediately. Two rounds of revisions are included in the procedure.

    Advantages of Shareholder's Agreement

    Clarifies Rights

    It's major advantage is that it clarifies the rights and obligations of the shareholder and the rights that you reserve as the issuer of those shares by defining the rights and liabilities.

    Small Changes Made Easy

    The small and medium scale companies do not prefer to amend the constitution every time when there is any minor change. Hence, shareholder agreements are perfect for such companies.


    Shareholder’s Agreement acts as the manager of the relationship between small and large shareholders. It helps in differentiating the rights and obligations of small and large shareholders.

    FAQs on Shareholder’s Agreement

    Why would I need a shareholder agreement?

    Sometimes, the circumstances occur when founders do not put the efforts as promised, such circumstances can have very messy endings but these can be avoided by having a shareholder's agreement. Of course, if your company has one shareholder then you don't need one.

    What does a shareholder's agreement usually cover?

    A shareholder's agreement usually covers the following points:

    • Aim of the company
    • Management and operations of the company
    • Shareholder rights and accountability
    • Issue of new shares and the voting rights
    • Termination of agreement and share sale.