ºÚÁÏÊÓÆµ

Small Business Shareholder Agreement Template for India

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Small Business Shareholder Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Small Business Shareholder Agreement

"I need a Small Business Shareholder Agreement for my tech startup in Bangalore with three co-founders, where we want to include specific provisions for future funding rounds and employee stock options, plus protection for our intellectual property rights."

Document background
The Small Business Shareholder Agreement is a fundamental document for small and medium-sized enterprises in India seeking to establish clear guidelines for shareholder relationships and corporate governance. This agreement becomes essential when a business has multiple shareholders, whether they are founders, family members, or external investors. It operates within the framework of Indian corporate law, particularly the Companies Act, 2013, and addresses key aspects such as share transfers, voting rights, board composition, and dispute resolution mechanisms. The document is particularly crucial during various business lifecycle events, including new shareholder entry, exit planning, or when establishing governance structures. It helps prevent potential conflicts by clearly defining shareholders' rights and obligations while providing mechanisms for business continuity and growth within the Indian legal context.
Suggested Sections

1. Parties: Identification of all shareholders and the company, including their full legal names, addresses, and registration details

2. Background: Context of the agreement, including company formation details and purpose of the shareholder agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Share Capital and Shareholding: Details of authorized and issued share capital, classes of shares, and current shareholding pattern

5. Share Transfer Restrictions: Right of first refusal, tag-along rights, drag-along rights, and process for share transfers

6. Corporate Governance: Board composition, appointment of directors, voting rights, and meeting procedures

7. Shareholder Meetings: Procedures for conducting shareholder meetings, voting rights, and quorum requirements

8. Reserved Matters: List of decisions requiring special majority or unanimous consent

9. Dividend Policy: Framework for declaration and distribution of dividends

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Dispute Resolution: Mechanism for resolving disputes between shareholders

12. Term and Termination: Duration of the agreement and circumstances for termination

13. General Provisions: Standard clauses including notices, amendments, governing law, and jurisdiction

Optional Sections

1. Tag-Along and Drag-Along Rights: Detailed section on exit mechanisms, recommended when there are multiple shareholders with varying ownership percentages

2. Anti-Dilution Protection: Protection against share dilution, important when future funding rounds are anticipated

3. Non-Compete and Non-Solicitation: Restrictions on competitive activities, relevant when shareholders are actively involved in business operations

4. Intellectual Property Rights: IP ownership and protection clauses, essential for technology or brand-focused businesses

5. Employee Share Options: Framework for employee stock options, relevant if the company plans to offer equity to employees

6. Dead-Lock Resolution: Specific procedures for resolving management deadlocks, important for companies with equal shareholding

7. Put and Call Options: Rights to force purchase or sale of shares, useful for providing exit mechanisms

8. Foreign Investment Compliance: Additional provisions for compliance with FEMA if foreign shareholders are involved

Suggested Schedules

1. Schedule 1: Details of Shareholders: Complete list of shareholders with their shareholding details, contact information, and nominee details

2. Schedule 2: Share Capital Structure: Detailed breakdown of share classes, rights attached to shares, and shareholding pattern

3. Schedule 3: Reserved Matters List: Comprehensive list of decisions requiring special approval

4. Schedule 4: Board Composition: Details of current board members and rules for board composition

5. Schedule 5: Business Plan: Initial business plan and key business objectives

6. Schedule 6: Tag and Drag Along Procedures: Detailed procedures for implementing tag-along and drag-along rights

7. Appendix A: Share Transfer Notice Template: Standard form for notifying share transfers

8. Appendix B: Board Resolution Templates: Standard templates for common board resolutions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions











































Clauses






































Relevant Industries

Technology

Manufacturing

Retail

Professional Services

Healthcare

Food & Beverage

E-commerce

Education

Real Estate

Construction

Consulting

Digital Services

Family Business

Trading

Small Scale Industries

Relevant Teams

Legal

Corporate Secretarial

Finance

Compliance

Board of Directors

Corporate Governance

Executive Leadership

Investment

Risk Management

Business Development

Relevant Roles

CEO

Managing Director

Company Secretary

Legal Counsel

Chief Financial Officer

Business Owner

Founder

Director

Compliance Officer

Corporate Lawyer

Investment Manager

Board Member

Finance Director

General Counsel

Business Development Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Joint Written Consent Of Directors And Shareholders

An Indian corporate document recording simultaneous written consent from both directors and shareholders for company decisions under the Companies Act, 2013.

find out more

Corporation Loan To Shareholder Agreement

An Indian law-governed agreement establishing terms for a corporation to provide a loan to its shareholder, including loan terms, security, and statutory compliance requirements.

find out more

Public Company Shareholders Agreement

An Indian law-governed agreement establishing rights and obligations between shareholders in a public listed company, ensuring compliance with Companies Act 2013 and SEBI regulations.

find out more

Share Allocation Agreement

An Indian law-governed agreement documenting the terms and conditions for allocation of company shares to subscribers, ensuring compliance with Companies Act 2013 and securities regulations.

find out more

Shareholder Resignation Agreement

An Indian law-governed agreement documenting a shareholder's formal resignation and exit from company ownership, including share treatment and mutual releases.

find out more

Minority Protection Rights Shareholders Agreement

An Indian law-governed agreement establishing minority shareholder protections, including voting rights, board representation, and anti-dilution measures.

find out more

Shareholder Control Agreement

An Indian law-governed agreement defining shareholders' rights, obligations, and relationships within a company, including share transfer and voting provisions.

find out more

Cross Option Agreement Shareholder

An Indian law-governed agreement establishing mutual options between shareholders to buy/sell shares upon specific trigger events, ensuring smooth ownership transition and business continuity.

find out more

Spousal Consent Shareholder Agreement

An Indian law agreement documenting spousal consent and rights regarding company shareholding, combining corporate and matrimonial law considerations.

find out more

Single Shareholder Agreement

An Indian law-governed agreement establishing rights and obligations between a company and its sole shareholder, defining ownership and control parameters.

find out more

Shareholder Indemnification Agreement

An Indian law-governed agreement establishing indemnification obligations between shareholders, defining compensation terms and procedures for specified losses or liabilities.

find out more

Shareholder Representative Agreement

An Indian law-governed agreement establishing the appointment, powers, and duties of a shareholder representative in accordance with the Companies Act, 2013.

find out more

Share Redemption Agreement

An Indian law-governed agreement detailing the terms and process for a company to redeem its shares from existing shareholders, ensuring regulatory compliance and proper execution of the share redemption.

find out more

Company Shareholder Agreement

An Indian law-governed agreement that defines and regulates relationships between company shareholders, establishing their rights, obligations, and corporate governance framework.

find out more

Shareholder Separation Agreement

An Indian law-governed agreement documenting the terms and conditions for a shareholder's exit from a company, including share transfer and post-exit obligations.

find out more

Shareholder Withdrawal Agreement

An agreement governing shareholder withdrawal from an Indian company, detailing share transfer terms and compliance requirements under Indian law.

find out more

Silent Shareholder Agreement

An Indian law-governed agreement establishing the terms and conditions for a passive investor's capital investment and profit-sharing rights without management involvement.

find out more

Shareholder Termination Agreement

An Indian law-governed agreement that formalizes a shareholder's exit from a company, including share transfer terms and post-termination obligations.

find out more

Unanimous Shareholder Agreement

An Indian law-governed agreement establishing unanimous consent requirements and governing relationships between all company shareholders.

find out more

Shareholder Settlement Agreement

An Indian law-governed agreement that documents the settlement of disputes between shareholders, including terms of resolution and future obligations.

find out more

Family Business Shareholders Agreement

An Indian law-governed agreement establishing rights and responsibilities between family shareholders in a family-owned business, covering ownership, management, and succession matters.

find out more

Small Business Shareholder Agreement

An Indian law-governed agreement establishing rights and obligations between shareholders in a small business, including governance structure and share transfer provisions.

find out more

Shareholders Agreement Transfer Of Shares

An Indian law-governed agreement regulating the transfer of shares between shareholders, establishing procedures and protecting shareholder rights.

find out more

Shareholder Buy Sell Agreement

An Indian law-governed agreement establishing rules and procedures for share transfers between company shareholders, including valuation methods and transfer mechanisms.

find out more

Stakeholders Agreement

An Indian law-governed agreement establishing rights and obligations between company stakeholders, including shareholding, management, and governance provisions.

find out more

Proxy Shareholder Agreement

An Indian law-governed agreement that authorizes a proxy holder to exercise shareholder voting rights and specified powers on behalf of a principal shareholder.

find out more

Shareholders Agreement For Private Limited Company

An Indian law-governed agreement that defines and regulates relationships between shareholders in a private limited company, establishing their rights, obligations, and company governance structure.

find out more

Shareholder Support Agreement

An Indian law-governed agreement establishing shareholder commitments and support obligations for corporate actions.

find out more

Non Compete Shareholders Agreement

An Indian law-governed agreement combining shareholder rights with non-compete obligations, establishing competitive restrictions and shareholder relationships while ensuring compliance with Indian corporate and competition laws.

find out more

Entrusted Shareholding Agreement

An Indian law-compliant agreement establishing a trust arrangement for shareholding between a beneficial owner and a nominee shareholder.

find out more

Share Subscription And Shareholders Agreement

An Indian law-governed agreement combining share subscription terms and shareholders' rights and obligations for corporate investment transactions.

find out more

Startup Shareholder Agreement

An Indian law-governed agreement defining rights, obligations, and relationships between startup shareholders, including governance and exit provisions.

find out more

Shareholder Buyout Agreement

An Indian law-governed agreement facilitating the transfer of shares from existing shareholder(s) to other shareholders or the company, including terms of sale and regulatory compliance requirements.

find out more

Employee Shareholder Agreement

An Indian law-governed agreement establishing terms for employee share ownership and employment conditions, combining shareholding rights with employment obligations.

find out more

Shareholder Investment Agreement

An Indian law-governed agreement establishing terms for company investment through share purchase, defining investor rights and company obligations.

find out more

Shareholder Transfer Agreement

An Indian law-governed agreement facilitating the formal transfer of company shares between parties, detailing terms, conditions, and regulatory compliance requirements.

find out more

Joint Venture And Shareholders Agreement

An Indian law-governed agreement establishing a joint venture and defining shareholders' rights and obligations, including company formation, management, and exit provisions.

find out more

Shareholder Purchase Agreement

An Indian law-governed agreement documenting the terms and conditions for the purchase and sale of shares in a company, including price, warranties, and closing mechanisms.

find out more

Amended And Restated Shareholders Agreement

An Indian law-governed agreement that updates and restates the rights and obligations between company shareholders, incorporating new terms while replacing the previous agreement.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

³Ò±ð²Ô¾±±ð’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ³Ò±ð²Ô¾±±ð’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.