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Entity Operating Agreement
"I need an Entity Operating Agreement for a new technology startup in Bangalore with three founding members and two angel investors, incorporating specific provisions for future funding rounds and an ESOP pool of 10% to be implemented by March 2025."
1. Parties: Identification of all members/shareholders entering into the agreement
2. Background: Context of the agreement formation and brief description of the entity's purpose
3. Definitions and Interpretation: Comprehensive list of defined terms and interpretation rules
4. Formation and Name: Details of entity formation, registered name, and business purpose
5. Registered Office: Location of registered office and provisions for changing it
6. Capital Structure: Details of authorized capital, initial contributions, and shareholding pattern
7. Management Structure: Composition of board, appointment/removal of directors, and management roles
8. Members' Rights and Obligations: Rights, duties, and responsibilities of members/shareholders
9. Meetings and Voting: Procedures for board and general meetings, voting rights, and quorum requirements
10. Financial Management: Financial year, accounts, audits, and distribution of profits
11. Transfer of Shares: Process and restrictions for transfer of ownership interests
12. Exit Provisions: Mechanisms for member exit, including buy-sell provisions
13. Dispute Resolution: Process for resolving disputes between members/shareholders
14. Confidentiality: Protection of company and member confidential information
15. Term and Termination: Duration of agreement and conditions for termination
16. General Provisions: Standard boilerplate clauses including notices, amendments, governing law
1. Foreign Investment Provisions: Required when entity has foreign investors, covering FEMA compliance and FDI regulations
2. Intellectual Property Rights: Needed when entity owns or develops significant IP assets
3. Non-Compete and Non-Solicitation: Added when specific restrictions on member business activities are required
4. Tag-Along and Drag-Along Rights: Included for entities planning future investment rounds or exits
5. Strategic Affairs Committee: For larger entities requiring additional governance oversight
6. Employee Stock Options: When entity plans to implement ESOP schemes
7. Branch Offices: Required when entity plans to operate multiple locations
8. Digital Operations: For entities conducting significant online business activities
9. CSR Obligations: Required for companies meeting threshold under Companies Act for CSR activities
1. Schedule 1 - Details of Members: Complete information about all members including contact details and shareholding
2. Schedule 2 - Initial Capital Contributions: Detailed breakdown of each member's initial capital contribution
3. Schedule 3 - Business Plan: Initial business plan and projected financials
4. Schedule 4 - Reserved Matters: List of decisions requiring special approval
5. Schedule 5 - Share Valuation Methodology: Agreed method for valuing shares for transfers or exits
6. Appendix A - Board Resolution Templates: Standard formats for board resolutions
7. Appendix B - Meeting Procedures: Detailed procedures for conducting various types of meetings
8. Appendix C - Compliance Checklist: List of regulatory compliance requirements
9. Appendix D - Key Business Policies: Important internal policies and procedures
Authors
Affiliate
Annual General Meeting
Articles of Association
Board
Board Meeting
Business
Business Day
Business Plan
Capital Contribution
Chairman
Company
Competitor
Confidential Information
Control
Director
Effective Date
Encumbrance
Extraordinary General Meeting
Financial Year
Force Majeure Event
Founding Members
Group Company
Intellectual Property Rights
Investment Amount
Key Managerial Personnel
Material Adverse Effect
Member
Memorandum of Association
Notice
Ordinary Resolution
Parties
Permitted Transferee
Quorum
Registered Office
Related Party
Reserved Matters
Resolution
Share Capital
Shareholders
Shareholders Agreement
Shares
Special Resolution
Subsidiary
Tag-Along Right
Transfer
Transferor
Transferee
Voting Rights
Capital Contribution
Share Capital
Membership Rights
Management Rights
Board Composition
Voting Rights
Transfer Restrictions
Pre-emptive Rights
Tag-Along Rights
Drag-Along Rights
Board Meetings
Shareholder Meetings
Decision Making
Reserved Matters
Financial Management
Profit Distribution
Capital Structure
Share Transfer
Exit Rights
Confidentiality
Non-Compete
Non-Solicitation
Intellectual Property
Dispute Resolution
Governing Law
Amendment Procedures
Termination Rights
Force Majeure
Notices
Compliance
Representations and Warranties
Indemnification
Business Operations
Record Keeping
Audit Rights
Dividend Policy
Asset Management
Winding Up
Technology and Software
Manufacturing
Professional Services
Retail and E-commerce
Healthcare
Financial Services
Real Estate
Education
Hospitality
Construction
Logistics and Transportation
Media and Entertainment
Agriculture
Energy and Utilities
Telecommunications
Legal
Corporate Governance
Compliance
Finance
Executive Leadership
Board of Directors
Corporate Secretarial
Risk Management
Strategic Planning
Investment Relations
Chief Executive Officer
Managing Director
Company Secretary
Chief Legal Officer
Chief Financial Officer
Board Director
Corporate Counsel
Compliance Officer
Legal Manager
Corporate Governance Officer
Risk Manager
Business Development Manager
Operations Director
Investment Manager
Shareholder Relations Manager
General Counsel
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