Document background
The Shareholder Termination Agreement is a crucial document used when a shareholder exits a company in India, whether through voluntary departure, retirement, or mutual agreement. It becomes necessary when shareholders wish to end their association with the company and requires careful consideration of Indian corporate law, particularly the Companies Act, 2013, and related regulations. The agreement typically includes detailed provisions for share valuation, transfer mechanics, payment terms, and various obligations such as confidentiality and non-compete clauses. It's particularly important in private companies where share transfers need to be carefully documented and controlled. The document serves to prevent future disputes by clearly outlining the terms of separation and ensuring all regulatory requirements are met.
