What is a Shareholders’ Agreement & Why Every Startup Needs One?

 What is a Shareholders’ Agreement & Why Every Startup Needs One?” 📈🖋️

Client: “We’ve raised funding! Should we think about a Shareholders’ Agreement now?” 🤔
Well, if investors are coming in, better have the rules in writing — not in WhatsApp chats! 😅📲

✅ What is a Shareholders’ Agreement (SHA)?
✔️ A legal document that governs the relationship between a company and its shareholders, defining rights, duties, voting powers, exit strategies, and profit distribution.
✔️ Vital during fundraising, equity distribution, and startup growth stages.
#ShareholdersAgreementIndia #StartupLaw #EquityManagement #BusinessContracts #FundingAgreement

✅ Why You Need It:
📌 Clarifies shareholding structure
📌 Defines roles of investors vs. promoters
📌 Protects minority shareholders
📌 Sets dispute resolution mechanisms
📌 Ensures smooth exit or buyback procedures
#StartupGovernance #InvestorAgreementIndia #EquityShareDeal #CorporateLawIndia #StartupCompliance

✅ Key Clauses to Include:
📄 Transfer restrictions (ROFR, ROFO)
💼 Tag-along & drag-along rights
🗳️ Voting rights and board control
📊 Dividend policies
🚪 Exit strategy & IPO plans
#StartupLegalFramework #ShareholderProtection #BusinessGrowthStrategy #InvestorLegalSupport

🤣 “Don’t let your startup story turn into a courtroom drama — protect your equity before you pop the champagne!” 🍾📉⚖️

👉 Pro Tip: Always draft your SHA before issuing equity — it saves you from legal headaches later!
#FoundersMustKnow #StartupChecklistIndia #LegalFundraising #LexisAndCompany

📢 Need a robust Shareholders’ Agreement? Lexis and Company drafts it right, protects your startup’s future! 🚀📜

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