The Advisory Shares Agreement is a critical document used when companies, particularly startups and growing businesses in India, seek to engage experienced advisors while preserving cash resources. This agreement type has become increasingly common in the Indian startup ecosystem as companies look to leverage expert guidance in exchange for equity compensation. The document, structured under Indian corporate law framework, typically details the quantum of shares offered (usually 0.1% to 2% of company equity), vesting schedules, and specific advisory responsibilities. It includes provisions compliant with the Companies Act 2013 and SEBI regulations, addressing key aspects such as share transfer restrictions, confidentiality obligations, and termination conditions. The Advisory Shares Agreement is particularly valuable for early-stage companies looking to attract high-quality advisors while managing cash flow, and for advisors seeking to build a portfolio of equity positions in promising ventures.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
Alternatively...
1. Parties: Identification of the Company and the Advisor, including their legal names, addresses, and registration details
2. Background: Context of the advisory relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement, including 'Advisory Shares', 'Services', 'Vesting Period', etc.
4. Appointment and Scope: Terms of advisor's appointment and detailed scope of advisory services
5. Share Compensation: Details of advisory shares, including number of shares, type, and percentage of company equity
6. Vesting Schedule: Timeline and conditions for share vesting, including any cliff period
7. Advisor's Obligations: Specific duties, time commitments, and performance expectations
8. Company's Obligations: Company's commitments, including information provision and support
9. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority
10. Confidentiality: Protection of company's confidential information and trade secrets
11. Term and Termination: Duration of the agreement and conditions for early termination
12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
13. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability
1. Non-Competition: Restrictions on advisor's involvement with competing businesses, used when advisor has access to sensitive competitive information
2. Share Transfer Restrictions: Additional limitations on transfer of advisory shares, used for early-stage companies wanting to maintain control
3. Intellectual Property Rights: Provisions regarding IP created during advisory services, important for technical advisors
4. Board Observer Rights: Rights to attend board meetings, used for senior advisors with strategic input
5. Dispute Resolution: Specific arbitration or mediation procedures, used when parties prefer alternative dispute resolution
6. Foreign Exchange Compliance: FEMA compliance provisions, required when advisor is non-resident
7. Tax Implications: Specific tax-related provisions and responsibilities, useful when complex tax structures are involved
1. Schedule A - Services Description: Detailed outline of advisory services, deliverables, and time commitment
2. Schedule B - Share Vesting Details: Comprehensive vesting schedule with specific dates and milestones
3. Schedule C - Company Information: Key company details including capitalization table and share class rights
4. Schedule D - Advisor's Background: Advisor's relevant experience and qualifications
5. Schedule E - Confidentiality Terms: Detailed confidentiality obligations and procedures
6. Appendix 1 - Share Certificate Template: Format for advisory share certificates
7. Appendix 2 - Required Regulatory Forms: Templates for necessary filings with regulatory authorities
Authors
Find the document you need
Business Consulting Engagement Letter
An Indian-law governed engagement letter defining the terms, scope, and conditions of a business consulting relationship between a consultant and client.
Download
Business Consultant Contract Agreement
An Indian law-governed agreement establishing terms and conditions between business consultants and their clients, including service scope, deliverables, and compliance requirements.
Download
Startup Advisor Contract
An Indian law-governed agreement establishing the terms and conditions between a startup and its advisor, including services, compensation, and obligations.
Download
Senior Advisor Agreement
An Indian law-governed agreement establishing terms for engaging a senior advisor, including service scope, compensation, and obligations.
Download
Financial Advisory Agreement
An Indian law-governed agreement establishing terms and conditions between a financial advisor and client, ensuring SEBI-compliant advisory services.
Download
Business Advisor Agreement
An Indian law-governed agreement establishing terms and conditions for business advisory services between an advisor and client organization.
Download
Advisory Shares Agreement
An Indian law-governed agreement that formalizes the exchange of company shares for advisory services, typically used by startups and growing companies.
Download
Advisory Services Contract
An Indian law-governed agreement establishing terms for professional advisory services, including scope, responsibilities, and compensation.
Download
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
