The Nominee Shareholder Agreement is essential in Indian corporate structuring where beneficial owners wish to maintain share ownership through nominees while retaining effective control. This arrangement is commonly used for business succession planning, corporate restructuring, or strategic holdings. The agreement must comply with Indian regulatory requirements, including the Companies Act 2013, SEBI regulations, and disclosure requirements. A well-drafted Nominee Shareholder Agreement includes comprehensive provisions for share management, voting rights, dividend handling, and clear termination procedures. It's particularly important in family businesses, corporate groups, and investment structures where nominee arrangements are common practice while ensuring transparency and legal compliance.

1. Parties: Identifies the beneficial owner and the nominee shareholder with their complete details

2. Background: Explains the context of the agreement and the intention to create a nominee arrangement

3. Definitions: Defines key terms used throughout the agreement including 'Shares', 'Beneficial Owner', 'Nominee', etc.

4. Appointment of Nominee: Formal appointment of the nominee and acknowledgment of the beneficial ownership

5. Declaration of Trust: Nominee's declaration that they hold shares in trust for the beneficial owner

6. Rights and Obligations of the Nominee: Details the nominee's responsibilities, voting rights, and limitations on authority

7. Rights and Obligations of the Beneficial Owner: Specifies the beneficial owner's control rights and responsibilities

8. Consideration: Details any fees or compensation for the nominee's services

9. Representations and Warranties: Standard representations from both parties regarding capacity and authority

10. Indemnification: Provisions for indemnifying the nominee for actions taken under proper authority

11. Confidentiality: Obligations to maintain confidentiality of the arrangement and related information

12. Term and Termination: Duration of the agreement and circumstances for termination

13. Transfer of Shares: Process for transferring shares back to the beneficial owner or their designee

14. Governing Law and Jurisdiction: Specifies Indian law as governing law and jurisdiction for disputes

15. Notices: Process for serving notices between parties

16. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, etc.