What is a Shareholders’ Agreement & Why Do Startups Need One?” π | Partners in Profit or Problem? Let’s Seal it Legally! π️π π¬ Client Question: "Sir, we are three friends starting a company. Should we sign any agreement regarding ownership or profits? Can’t we just trust each other? π€" π Answer: Trust is beautiful… but business runs better on paper than on promises! π
πΈ Enter the Shareholders’ Agreement (SHA) — your startup’s superhero cape! π¦Έ♂️π¦Έ♀️ π What is a Shareholders’ Agreement? ✔ A legally binding agreement among the company’s shareholders ✔ Defines rights, responsibilities, shareholding patterns, profit sharing, dispute resolution, and exit mechanisms ✔ Protects founders, investors, and minority shareholders #ShareholdersAgreement #StartupLawIndia #EquityAgreement #LegalStartupKit π Why is SHA a Must-Have for Startups? ✅ Prevents future misunderstandings ✅ Outlines decision-making authority ✅ Defines exit strategy for founders/invest...
Can I Use a MOA and AOA Template from Google to Register My Company?" π€π✨ Ah yes, the good old DIY method! Clients often ask us: π “I found a Memorandum of Association (MOA) and Articles of Association (AOA) template online… Can I just copy-paste it and get my company registered?” π
Short answer: Yes, you can. But should you? Absolutely not. #MOA #AOA #CompanyLawIndia #StartupIndia #CompanyRegistration π Why MOA & AOA Matter So Much These two documents are the constitutional backbone of your company. They define: ✅ Your company’s objectives, operations & structure ✅ Roles, rights & duties of directors and shareholders ✅ Capital structure , shareholding pattern, decision-making power ✅ Rules for dispute resolution , meetings, voting rights, winding up etc. #CompanyFormation #BusinessLaw #MOAAOA #LegalDocumentsIndia ⚠️ The Problem with Copy-Paste Templates: π« Generic language not aligned with your business goals π« Missing clauses relevant to you...