A shareholder agreement in India is a legal document that sets the rules for shareholders. It covers who owns shares and how they can be transferred, voting rights, managing the company, and making decisions. The shareholders agreement India also discusses how profits are distributed, disputes are resolved, and rules about not competing with the company.
A well-drafted shareholder agreement is essential for private limited companies because it creates a strong foundation for shareholders. It helps protect their interests, ensures the company runs smoothly, and deals with any conflicts that might come up. When making a shareholder agreement for your company, it’s important to get legal help to ensure it follows all Indian laws.