Document background
The Subscription And Shareholders Agreement (SSHA) is a fundamental document in Indian corporate transactions, typically used when a company is raising capital through the issue of new shares while simultaneously establishing the framework for shareholder relationships. This hybrid agreement is particularly relevant for private equity investments, venture capital funding, or strategic investments in private companies. It combines the immediate need to document the share subscription process with the long-term requirement of regulating shareholder relationships. The agreement must comply with Indian corporate law, particularly the Companies Act 2013, SEBI regulations (if applicable), and foreign investment laws if international investors are involved. It includes crucial elements such as investment terms, governance rights, share transfer restrictions, exit mechanisms, and minority protection provisions.
