Do I Need a Shareholders’ Agreement If I Already Have Equity Allotted?

 Do I Need a Shareholders’ Agreement If I Already Have Equity Allotted?"

#ShareholdersAgreement #StartupEquityIndia #CompanyLaw #InvestmentDeals #StartupLawIndia #LexisAndCompany

Client Question:
"We’ve already issued shares to investors and team members. Isn’t that enough? Why bother with a Shareholders’ Agreement now?" 🤨📊

#EquityConfusion #StartupFoundersIndia #LegalStartupTips #InvestorAgreements

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Answer (Buckle up founders! 🚀):
Equity is like marriage—you might love each other now, but what happens during a disagreement, divorce, or a surprise exit? 😅💔

A Shareholders’ Agreement (SHA) is your company’s relationship contract! It controls how equity holders behave, vote, exit, and protect the company’s interests.

Without an SHA, things can get messy. Like… full-blown courtroom drama messy! 🎬⚖️

#FoundersDrama #InvestorIssues #StartupGovernance #PrivateLimitedTips

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🧾 What Does a SHA Typically Cover?
✅ Transfer of shares and lock-in periods 🔒
✅ Board composition & voting rights 👥
✅ Exit strategies (drag-along, tag-along rights) 🏃‍♂️🏃‍♀️
✅ Pre-emptive rights for future funding 💸
✅ Dispute resolution clauses 🧑‍⚖️
✅ Reserved matters (aka: investor veto rights) ⛔

#StartupInvestment #VCDealsIndia #PrivateEquityLaws #StartupCompliance

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🤔 Who Needs a Shareholders’ Agreement?
✔️ Startups raising angel/VC funding
✔️ Companies with multiple founders
✔️ Teams issuing ESOPs
✔️ Businesses expecting rapid growth or future exits

An SHA brings transparency, trust, and a roadmap for chaos-free success. 📍💼

#AngelInvestorsIndia #StartupGrowthLegal #EquityPeacePlan #InvestorProtection

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⚠️ REAL WORLD GYAAN (Read This!):
A startup once gave 20% to an “inactive co-founder” without an SHA.
He blocked every board decision and refused to exit.
The company? Dead on arrival. ☠️

Don’t wait till it’s too late. A Shareholders’ Agreement is not optional—it’s your startup’s safety net.

#FoundersProtection #StartupSafetyKit #InvestmentClarity #EquityWars

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📩 Want an expertly drafted, startup-friendly Shareholders’ Agreement that won’t scare off investors?
Let LEXIS AND COMPANY guide you like your own in-house legal team!

📞 Call: +91-9051112233
🌐 Website: https://www.lexcliq.com