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Stakeholders Agreement
"I need a Stakeholders Agreement for my technology startup that has received Series A funding from two venture capital firms in January 2025, with specific provisions for future funding rounds and employee stock options, while ensuring adequate protection for founding members who will retain 60% ownership."
1. Parties: Identification of all parties entering into the agreement, including the company and all stakeholders
2. Background: Context of the agreement, including company history, purpose, and existing shareholding structure
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Shareholding Structure: Details of current shareholding and share classes, including rights attached to shares
5. Management and Control: Governance structure, board composition, appointment rights, and decision-making processes
6. Reserved Matters: List of decisions requiring special majorities or specific stakeholder approval
7. Share Transfer Restrictions: Limitations on transfer of shares, including right of first refusal and tag-along rights
8. Exit Rights: Mechanisms for stakeholder exit, including put and call options, drag-along rights
9. Funding and Capital Structure: Provisions for future funding, capital calls, and dilution protection
10. Dividends and Distribution Policy: Rules governing dividend declarations and profit distribution
11. Information Rights: Stakeholders' rights to company information and financial reports
12. Non-Compete and Confidentiality: Restrictions on competitive activities and protection of confidential information
13. Dispute Resolution: Procedures for resolving disputes between stakeholders
14. Term and Termination: Duration of the agreement and circumstances for termination
15. General Provisions: Standard boilerplate clauses including notices, amendments, governing law
1. Tag-Along and Drag-Along Rights: Used when there's likelihood of strategic sales or exits, giving minority shareholders protection or majority shareholders flexibility
2. Anti-Dilution Protection: Important when dealing with multiple funding rounds or potential new investments
3. Foreign Investment Compliance: Required when foreign stakeholders are involved, addressing FEMA compliance
4. IPO Rights: Relevant for companies planning potential public listing
5. Deadlock Resolution: Important for 50-50 joint ventures or where equal shareholding exists
6. Employee Stock Options: Required when company has or plans to have ESOP schemes
7. Industry-Specific Compliance: Needed for regulated industries like financial services or healthcare
8. Digital Rights and IT Assets: Important for technology companies or digital businesses
1. Schedule 1 - Details of Shareholders: Complete list of shareholders with their shareholding details
2. Schedule 2 - Company Information: Details of company registration, directors, and corporate structure
3. Schedule 3 - Reserved Matters List: Comprehensive list of matters requiring special approval
4. Schedule 4 - Share Transfer Procedures: Detailed procedures and forms for share transfers
5. Schedule 5 - Deed of Adherence: Template for new shareholders joining the agreement
6. Schedule 6 - Valuation Methodology: Agreed methods for company/share valuation
7. Schedule 7 - Board Procedures: Detailed procedures for board meetings and resolutions
8. Appendix A - Initial Business Plan: Company's current business plan and projections
9. Appendix B - Compliance Checklist: List of regulatory compliances and requirements
Authors
Annual Business Plan
Board
Business
Business Day
Cause
Company
Competitor
Confidential Information
Control
Deed of Adherence
Directors
Drag Along Notice
Drag Along Right
Effective Date
Encumbrance
Event of Default
Fair Market Value
Financial Year
First Right of Refusal
Group
Independent Director
Initial Business Plan
Intellectual Property Rights
Key Management Personnel
Material Adverse Effect
Nominee Director
Non-Compete Period
Ordinary Course of Business
Original Shareholders
Parties
Permitted Transferee
Person
Promoter
Put Option
Related Party
Reserved Matters
Restricted Business
ROFR Notice
ROFR Period
Shareholders
Shares
Strategic Sale
Subsidiary
Tag Along Right
Transfer
Valuation
Whole-time Director
Shareholding Rights
Board Composition
Board Meetings
Shareholder Meetings
Management Rights
Reserved Matters
Information Rights
Pre-emptive Rights
Transfer Restrictions
Right of First Refusal
Tag Along Rights
Drag Along Rights
Put Option
Call Option
Anti-dilution
Non-compete
Non-solicitation
Confidentiality
Promoter Obligations
Minority Protection
Dividend Policy
Future Funding
Exit Rights
IPO Rights
Event of Default
Deadlock Resolution
Dispute Resolution
Governing Law
Jurisdiction
Force Majeure
Termination
Indemnification
Notices
Assignment
Severability
Entire Agreement
Amendment
Waiver
Costs
Third Party Rights
Technology and Software
Manufacturing
Financial Services
Healthcare and Pharmaceuticals
Real Estate and Construction
Retail and E-commerce
Media and Entertainment
Energy and Utilities
Education
Professional Services
Agriculture and Food Processing
Telecommunications
Automotive
Hospitality and Tourism
Legal
Corporate Secretarial
Compliance
Corporate Affairs
Finance
Board of Directors
Investor Relations
Risk Management
Corporate Governance
Strategy
Chief Executive Officer
Managing Director
Company Secretary
Chief Legal Officer
Corporate Lawyer
Chief Financial Officer
Board Director
Compliance Officer
Investment Manager
Private Equity Manager
Venture Capital Partner
Corporate Governance Officer
Risk Management Officer
Shareholder Relations Manager
General Counsel
Legal Director
Corporate Affairs Manager
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