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...
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