Shareholders Agreement Draft India

In light of the Supreme Court`s decision in Vodafone International Holdings v. Union of India,[4] A violation of the shareholders` agreement that is not contrary to the Statute is a valid capital measure, but, as we have already indicated, the common law of the country allows aggrieved persons to benefit from a remedy for any violation of this agreement. However, to remedy the facilities provided for in the Companies Act, 2013, a more specific law on capital measures, it is essential that all the clauses of the shareholders` agreement be included in the articles of association. The rights of minority shareholders under the provisions of the Companies Act 2013 are set out in the shareholders` agreement. The agreement will guarantee the protection of minority shareholders in the event of mismanagement, repression or piggy backing (sale of shares by majority shareholders). Each company obtains its capital through shares ploughed by shareholders. Therefore, the shareholder plays an important role in the operation of a company and its relationships must be managed and neglected. A formal document that defines the conditions that shareholders meet with the company is what a shareholders` agreement is. It addresses many key issues that the company may face in the future and will clarify what, when and how shareholders should act, which allows for good management of the company. Minority shareholders are those who do not have much power when it comes to running the company.

Since the introduction of the Equity Act in 2013, the rights of minority shareholders have been enhanced. 19. This Agreement constitutes the entire agreement between the Parties on the subject matter of the Contract and supersedes all prior agreements, arrangements or understandings, if any, orally or in writing, between the Parties on the subject matter of this Agreement. . . .