1. Name of\nShareholders:<\/strong><\/p>\n\n\n\nName of\nall shareholders with their address should be mention in the agreement.<\/p>\n\n\n\n
2. Shareholder\nfunding<\/strong> <\/p>\n\n\n\nIn agreement, there should be clearly mentioned\nabout the shareholder’s fund and acquisition of shares. For example, few shareholders may contribute funds\nin cash for subscription of shares, whereas others may contribute any services\nin exchange or any other mode. <\/p>\n\n\n\n
3. Director\nappointments<\/strong><\/p>\n\n\n\nIn shareholder agreement, one should always specify\nregarding the right for an appointment of directors and under what\ncircumstances shareholders can lose their rights. <\/p>\n\n\n\n
4. Management,\nobligations and information<\/strong><\/p>\n\n\n\n The\nimportant area is to cover shareholder and management obligations. It is\nnecessary to specify what all are management and shareholders obligations.<\/p>\n\n\n\n
5. Changing of Business<\/strong><\/p>\n\n\n\nThere are\nrestrictions on changing the nature of the business.<\/p>\n\n\n\n
6. Dividends\nand financing<\/strong><\/p>\n\n\n\n In shareholders\u2019 agreement it is necessary to\nspecify that under which circumstances dividends may be payable. <\/p>\n\n\n\n
7. Exit strategy<\/strong><\/p>\n\n\n\nThe clause related to the exit strategy shall be\nmentioned in the agreement, like under what circumstances, shareholders can exit\nusually. <\/p>\n\n\n\n
8. Notices <\/strong><\/p>\n\n\n\nUnder this clause, the address of Notices need to\nbe mentioned<\/p>\n\n\n\n
9. Disputes<\/strong><\/p>\n\n\n\nIn shareholder’s agreement, it is necessary to mention that in case of dispute, what would be the preferred way to solve the dispute. What should be the jurisdiction of the court in case of any dispute? If Arbitration is the preferred way to handle or resolve any dispute, then the place of seating for Arbitration shall be mentioned.<\/p>\n\n\n\n