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Frequently asked Questions
A Shareholders’ Agreement is a contract governing shareholder rights, voting and share transfers under the Companies Act, 2013, ensuring clear corporate governance and SEBI compliance for listed firms.
No, but it’s recommended for private and unlisted companies to clarify shareholder rights and avoid disputes, per the Companies Act, 2013, enhancing governance stability.
Key clauses include Right of First Refusal (ROFR), tag-along, drag-along, voting thresholds, anti-dilution and arbitration for dispute resolution, tailored to protect shareholder interests.
It includes protections like Section 151 rights for small shareholders and veto powers, ensuring fair treatment and compliance with the Companies Act, 2013.
Yes, via a shareholder resolution (e.g., 75% vote) as per the Companies Act, 2013, allowing flexibility for changing business needs or ownership structures.
Non-signers aren’t bound, limiting enforceability against them in disputes, per the Contract Act, 1872, potentially complicating shareholder governance.
Termination occurs by mutual consent or per termination clauses, requiring shareholder approval under the Companies Act, 2013, ensuring legal compliance.
It ensures SEBI-compliant governance, transparent shareholder rights and ROC filings (e.g., Form SH-7), building investor confidence and supporting funding.
Novam Legal crafts Companies Act-compliant Shareholders’ Agreements with expert clauses, ROC filing support (e.g., SH-7) and SEBI compliance for robust governance.
Yes, under the Stamp Act, 1899, stamp duty applies based on state laws, as it’s a binding contract, ensuring legal enforceability.
For listed firms, Shareholders’ Agreements comply with SEBI’s LODR Regulations, ensuring transparent governance, shareholder rights and investor protections.
