Document background
The Startup Shareholders Agreement is a fundamental document for any emerging company in Pakistan seeking to establish clear governance and ownership structures. This agreement becomes essential when a startup moves beyond initial formation to include multiple shareholders, particularly when raising capital from investors. It provides the legal framework for managing shareholder relationships, protecting minority rights, and establishing clear procedures for company operations under Pakistani law. The agreement typically includes provisions for share transfers, voting rights, board composition, and dispute resolution, while ensuring compliance with the Companies Act 2017 and SECP regulations. It's particularly crucial for startups planning future funding rounds or potential exits, as it sets the foundation for investor relations and corporate governance.
