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Share Subscription And Shareholders Agreement
"I need a Share Subscription and Shareholders Agreement for a Series A investment of INR 50 crores into my technology startup by a venture capital fund, with standard minority protections and a 15% ESOP pool to be created before March 2025."
1. Parties: Identification of all parties including the company, existing shareholders, and new investors
2. Background: Context of the transaction, company's business, and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Subscription Terms: Details of shares being subscribed, price, payment terms, and conditions precedent
5. Completion: Process and obligations for closing the investment
6. Representations and Warranties: Statements of fact and assurances from the company and existing shareholders
7. Board Composition: Structure of the board, appointment rights, and removal of directors
8. Reserved Matters: List of actions requiring special approval from investors/board
9. Transfer Restrictions: Restrictions on transfer of shares and exceptions
10. Exit Rights: Provisions for IPO, strategic sale, drag-along and tag-along rights
11. Information Rights: Investors' rights to receive financial and operational information
12. Covenants: Ongoing obligations of the company and existing shareholders
13. Term and Termination: Duration of the agreement and circumstances for termination
14. Confidentiality: Protection of confidential information
15. Dispute Resolution: Process for resolving disputes between parties
16. General Provisions: Miscellaneous legal provisions including notices, amendments, governing law
1. Anti-Dilution Rights: Protection for investors against future down rounds, used when dealing with sophisticated investors
2. ESOP Provisions: Details of employee stock option pool, included when company has/plans to have ESOP
3. Founder Vesting: Vesting schedule for founders' shares, typically included in early-stage investments
4. Non-Compete and Non-Solicit: Restrictions on competitive activities, included when required by investors
5. Foreign Investment Compliance: Specific provisions for compliance with FEMA and FDI regulations when foreign investors are involved
6. Put Option: Right for investors to sell shares back to promoters, included in specific investment structures
7. Liquidation Preference: Priority rights in case of liquidation, typically included for preferred shares
8. Strategic Rights: Special rights for strategic investors, included when strategic investors are involved
1. Schedule 1 - Details of the Company: Company information including capital structure, subsidiaries, and material contracts
2. Schedule 2 - Subscription Details: Detailed breakdown of share subscription including valuation and cap table
3. Schedule 3 - Conditions Precedent: List of conditions to be satisfied before completion
4. Schedule 4 - Warranties: Detailed warranties given by the company and existing shareholders
5. Schedule 5 - Reserved Matters: Comprehensive list of matters requiring special approval
6. Schedule 6 - Completion Schedule: Step-by-step completion obligations and documentation requirements
7. Schedule 7 - Key Employees: List of key employees and their terms of employment
8. Schedule 8 - Deed of Adherence: Format for new shareholders to join the agreement
9. Appendix A - Board Resolution Format: Format of board resolutions required for completion
10. Appendix B - Shareholders Resolution Format: Format of shareholders resolutions required for completion
Authors
Agreement
Anti-Dilution Rights
Applicable Law
Articles of Association
Board
Business
Business Day
Business Plan
Call Option
Closing
Closing Date
Companies Act
Company
Completion
Conditions Precedent
Confidential Information
Consideration
Control
Deed of Adherence
Director
Drag Along Right
Effective Date
Encumbrance
Equity Shares
Event of Default
Exercise Notice
Exercise Period
Exit Event
Fair Market Value
Financial Year
First Closing
Fully Diluted Basis
Group Company
IPO
Investor
Investment Amount
Key Employees
Liquidation Event
Liquidation Preference
Material Adverse Effect
Memorandum of Association
New Securities
Nominee Director
Notice
Parties
Permitted Transferee
Person
Pre-emptive Right
Promoters
Put Option
Related Party
Reserved Matters
ROFR
ROFO
Sale Shares
SEBI
Shareholders
Shareholders Agreement
Share Capital
Subscription Price
Subscription Shares
Subsidiary
Tag Along Right
Transfer
Valuation
Warranties
Investment Terms
Payment Terms
Conditions Precedent
Completion Obligations
Representations and Warranties
Board Composition
Board Meetings
Reserved Matters
Information Rights
Pre-emptive Rights
Transfer Restrictions
Right of First Refusal
Right of First Offer
Tag-Along Rights
Drag-Along Rights
Anti-Dilution
Exit Rights
IPO Rights
Put Option
Call Option
Non-Compete
Non-Solicitation
Confidentiality
Indemnification
Event of Default
Termination
Dispute Resolution
Governing Law
Force Majeure
Notices
Assignment
Amendment
Severability
Waiver
Entire Agreement
Costs and Expenses
Further Assurance
Regulatory Compliance
Foreign Investment Compliance
Liquidation Preference
Technology
E-commerce
Manufacturing
Healthcare
Financial Services
Real Estate
Consumer Goods
Retail
Education
Media and Entertainment
Telecommunications
Biotechnology
Clean Energy
Agriculture
Infrastructure
Legal
Finance
Corporate Development
Compliance
Board of Directors
Executive Leadership
Investment
Corporate Secretarial
Risk Management
Strategy
Chief Executive Officer
Chief Financial Officer
General Counsel
Corporate Lawyer
Investment Manager
Venture Capital Associate
Private Equity Manager
Company Secretary
Chief Legal Officer
Investment Banker
Corporate Finance Manager
Compliance Officer
Director of Business Development
Managing Director
Board Member
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