Shareholders agreement

[Pracheta]

Dear All,

 

Here are some queries on Shareholders agreement:

 

What is the Validity of the shareholders agreement?

Who is bound by this agreement-is it only the shareholders who sign it?  

Is this being used by Companies?

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Best Regards,

CS.Pracheta.M

[Vishwas Hegde]

As the name suggests its the agreement among shareholders which also binds the company.

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With regards,
ಆ ರವಮಂ ನಿರ್ಜಿತಕಂ
ತೀ ರವರವಮಂ ನಿರಸ್ತ
ಘನರವಮಂ  ಕೋಪಾರುಣನೇತ್ರಂ
ಕೇಳ್ದಾ
ನೀರೊಳಗಿರ್ದುಂ ಬೆಮರ್ತನ್
ಉರಗಪತಾಕಂ !!!!
THANK YOU,
VISHWAS HEGDE

[Harish D]

The Company would be bound only if the Company is a party to the shareholders agreement and the terms are incorporated in the AOA.

As the AOA states the bye laws of the Company.

Correct me if my understanding is wrong

Warm regards,
Harish D
+91 96633 22007

[Premnarayan Tripathi]

Dear Friends,

 

1.      A Shareholders’ Agreement is a contract valid and enforceable under the Indian Contract Act, 1872 on the parties to the agreement.

 

2.      A shareholder will be binding only if he/she/it has signed the agreement as one of the party.

 

3.      If the Company is also made a party, it would be advisable to incorporate important covenants of the agreement in the Articles of the company to make it enforceable under the Companies Act.

 

4.      Some equity investors insists for ‘approval of the Shareholders’ Agreement’ by way of Special Resolution in the general meeting.

 

Thanks & regards,

CS. Premnarayan Tripathi

PRT & Associates,

Company Secretaries

201, Sarthik Square, Nr. GNFC Info Tower,

S G Highway, Ahmedabad - 380054

(M): +91 89800 26497

E-mail: premnar...@gmail.com