Share Partner Agreement Template for India

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Key Requirements PROMPT example:

Share Partner Agreement

"I need a Share Partner Agreement for my technology startup based in Bangalore, where three co-founders will have equal shareholding (33.33% each), with specific provisions for future funding rounds and protection of intellectual property rights."

Document background
The Share Partner Agreement is a crucial document used in Indian business contexts when two or more parties wish to formalize their relationship as shareholders in a company or business venture. This agreement is particularly important in private companies, joint ventures, and family businesses operating under Indian jurisdiction. It addresses key aspects such as share ownership percentages, management rights, profit distribution, decision-making processes, and exit mechanisms. The document must comply with various Indian laws including the Companies Act 2013, Securities regulations, and relevant tax provisions. It serves as a preventive measure against future disputes by clearly defining partners' rights and obligations, while providing mechanisms for conflict resolution and business continuity. The agreement is especially relevant when bringing in new shareholders, restructuring existing shareholding patterns, or establishing new business partnerships.
Suggested Sections

1. Parties: Identification of all parties entering into the agreement, including their legal names, addresses, and registration details

2. Background: Context of the agreement, including company details and purpose of the share partnership

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

4. Share Ownership Structure: Details of shareholding percentages, classes of shares, and capital contribution requirements

5. Rights and Obligations: Core responsibilities and rights of each share partner

6. Management and Control: Decision-making processes, voting rights, and management structure

7. Profit Sharing and Distributions: Terms for distribution of profits, dividends, and other financial benefits

8. Transfer Restrictions: Limitations and conditions on transfer of shares

9. Pre-emptive Rights: Rights of existing partners to maintain their ownership percentage when new shares are issued

10. Exit Provisions: Procedures for partner exit, including buy-out mechanisms and valuation methods

11. Dispute Resolution: Procedures for resolving disputes between partners

12. Confidentiality: Provisions regarding confidential information and trade secrets

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

14. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

Optional Sections

1. Tag-Along Rights: Include when minority shareholders need protection to join in sale of shares by majority shareholders

2. Drag-Along Rights: Include when majority shareholders need the right to force minority shareholders to join in sale of company

3. Non-Compete and Non-Solicitation: Include when partners need to be restricted from competing activities

4. Intellectual Property Rights: Include when the partnership involves significant IP assets or development

5. Foreign Investment Provisions: Include when any partner is a foreign entity or individual

6. Reserved Matters: Include when certain decisions require special majority or unanimous consent

7. Dead-Lock Resolution: Include when equal partnership situations need specific deadlock breaking mechanisms

8. Put and Call Options: Include when partners want specific share purchase or sale rights in certain circumstances

Suggested Schedules

1. Schedule 1 - Share Capital and Shareholding Pattern: Detailed breakdown of share capital structure and current shareholding

2. Schedule 2 - Business Plan: Initial business plan and strategic objectives of the partnership

3. Schedule 3 - Valuation Methodology: Agreed methods for share valuation in various circumstances

4. Schedule 4 - Reserved Matters List: Comprehensive list of decisions requiring special approval

5. Schedule 5 - Initial Directors and Key Personnel: List of initial directors and key management positions

6. Appendix A - Company Information: Detailed company information including registration details and existing contracts

7. Appendix B - Deed of Adherence: Template for new partners joining the agreement

8. Appendix C - Share Transfer Forms: Standard forms for share transfers under various scenarios

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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 and Software

Manufacturing

Professional Services

Real Estate and Construction

Healthcare and Pharmaceuticals

Retail and E-commerce

Financial Services

Media and Entertainment

Education and Training

Consulting Services

Industrial Services

Agriculture and Food Processing

Relevant Teams

Legal

Corporate Affairs

Finance

Compliance

Board of Directors

Corporate Governance

Investment

Business Development

Risk Management

Shareholder Relations

Relevant Roles

Chief Executive Officer

Managing Director

Company Secretary

Legal Counsel

Corporate Lawyer

Chief Financial Officer

Business Development Director

Investment Manager

Venture Capital Partner

Private Equity Manager

Board Member

Shareholder Relations Manager

Compliance Officer

Risk Manager

Partnership Director

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

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