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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?" ๐คจ๐ #EquityConfusion #StartupFoundersIndia #LegalStartupTips #InvestorAgreements Answer (Buckle up founders! ๐): Equity is like marriage—you might love each other now, but what happens during a disagreement, divorce, or a surprise exit? ๐
๐ 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! ๐ฌ⚖️ #FoundersDrama #InvestorIssues #StartupGovernance #PrivateLimitedTips ๐งพ What Does a SHA Typically Cover? ✅ Transfer of shares and lock-in periods ๐ ✅ Board...
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