The Private Equity Shareholders Agreement is a fundamental document used in private equity transactions in India, typically executed when a PE investor acquires a significant minority or majority stake in a company. It serves as the primary governing document that regulates the relationship between the PE investor, the target company, and its existing shareholders, incorporating provisions compliant with Indian corporate law, SEBI regulations, and foreign investment rules. This agreement is essential for protecting investor rights, establishing governance mechanisms, and providing exit options while ensuring alignment with Indian regulatory requirements. The document becomes particularly crucial in cross-border transactions where foreign PE investors need to navigate Indian regulatory framework while securing their investment interests.
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 all parties including the Company, PE investor(s), and existing shareholders
2. Background: Context of the investment, company history, and purpose of the agreement
3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation
4. Investment Terms: Details of the investment amount, valuation, and share subscription terms
5. Representations and Warranties: Statements of fact and assurances from all parties, particularly the Company and existing shareholders
6. Board Composition and Governance: Structure of the board, appointment rights, and governance mechanisms
7. Reserved Matters: List of actions requiring PE investor approval
8. Share Transfer Restrictions: Limitations and conditions on transfer of shares by any shareholder
9. Tag Along and Drag Along Rights: Exit-related rights for minority protection and majority forcing mechanisms
10. Information and Inspection Rights: Investor rights regarding company information access and inspection
11. Covenants and Undertakings: Ongoing obligations of the Company and other shareholders
12. Events of Default: Circumstances constituting breach and consequent remedies
13. Exit Rights: Mechanisms and timelines for PE investor exit
14. Dispute Resolution: Process for resolving disputes between parties
15. General Provisions: Standard boilerplate clauses including notices, amendments, governing law
1. Anti-Dilution Protection: Protection against value dilution in future funding rounds, included when multiple rounds are anticipated
2. Non-Compete and Non-Solicit: Restrictions on competitive activities, included when founders/key employees are parties
3. FCPA/Anti-Corruption Provisions: Specific compliance requirements, included for international investors or regulated industries
4. ESG Compliance: Environmental, Social and Governance standards, included when required by institutional investors
5. Founder Vesting: Vesting schedule for founder shares, included when founders receive equity incentives
6. Multiple Closing Provisions: Mechanics for multiple investment tranches, included for staged investments
7. Strategic Rights: Special rights for strategic investors, included when PE investor brings strategic value
8. Put Option Rights: Investor right to sell shares back to promoters, included for downside protection
1. Schedule 1 - Company Information: Detailed company information including capital structure and subsidiaries
2. Schedule 2 - Representations and Warranties: Detailed representations and warranties by each party
3. Schedule 3 - Reserved Matters: Comprehensive list of matters requiring investor consent
4. Schedule 4 - Deed of Adherence: Template for new shareholders to become party to the agreement
5. Schedule 5 - Company Business Plan: Detailed business plan and financial projections
6. Schedule 6 - Investment Terms: Detailed terms of investment including valuation and payment mechanics
7. Schedule 7 - Corporate Governance Guidelines: Detailed procedures for board and shareholder meetings
8. Schedule 8 - Relevant Market Price Calculation: Methodology for share valuation in various transfer scenarios
9. Schedule 9 - Key Employees: List of key employees and their terms of employment
10. Schedule 10 - Conditions Precedent: List of conditions to be satisfied before investment closing
Authors
Find the document you need
Equity Compensation Agreement
An Indian law-governed agreement establishing terms for granting equity-based compensation to employees, including vesting conditions and regulatory compliance requirements.
Download
Sweat Equity Contract
An Indian law-governed agreement for issuing equity shares to employees/directors in lieu of their non-monetary contributions to the company.
Download
Simple Agreement For Equity
An Indian law-compliant investment agreement providing rights to future equity in early-stage companies, commonly used in startup funding.
Download
Equity For Services Agreement
An Indian law-governed agreement defining terms for services provided in exchange for company equity, including service scope, equity terms, and compliance requirements.
Download
Co Founder Equity Agreement
An Indian law-governed agreement establishing equity distribution and rights among company co-founders, defining ownership structure and operational terms.
Download
Equity Agreement Contract
An Indian law-governed agreement for equity share issuance or transfer, detailing investment terms and shareholder rights under the Companies Act 2013.
Download
Private Equity Purchase Agreement
An Indian law-governed agreement documenting terms and conditions for private equity investment, including share purchase, warranties, and post-closing obligations.
Download
Phantom Stock Option Agreement
An Indian law-governed agreement that provides employees with financial benefits linked to company stock value without actual share transfer.
Download
Startup Equity Contract
An Indian law-governed agreement establishing terms for equity investment in startups, including share allocation, investor rights, and regulatory compliance.
Download
Phantom Stock Award Agreement
An Indian law-governed agreement establishing terms for granting phantom stock units as employee compensation, simulating stock ownership without actual equity transfer.
Download
Equity Stake Agreement
An Indian law-governed agreement documenting the terms and conditions of equity share purchase in a company, including share details, rights, and obligations of all parties.
Download
Private Equity Shareholders Agreement
An Indian law-governed agreement establishing rights and obligations between private equity investors, target company, and existing shareholders.
Download
Equity Buyout Agreement
An Indian law-governed agreement detailing the terms and conditions for the purchase and sale of equity shares in a company, including purchase price, warranties, and completion mechanics.
Download
Private Equity Investment Agreement
An Indian law-governed agreement documenting terms and conditions of private equity investment, including investment structure, rights, and obligations of all parties.
Download
Phantom Stock Agreement
An Indian law-governed agreement establishing a phantom stock plan that provides employees with benefits of stock ownership without actual equity transfer.
Download
Restricted Stock Unit Agreement
An Indian law-governed agreement establishing terms for granting Restricted Stock Units (RSUs) to employees, including vesting schedules and compliance requirements.
Download
Private Equity Agreement
An Indian law-governed agreement establishing terms and conditions for private equity investment, including investment structure, shareholder rights, and governance mechanisms.
Download
Equity Participation Agreement
An Indian law-governed agreement defining terms and conditions for equity investment in a company, including shareholding rights, governance, and exit provisions.
Download
Private Equity Subscription Agreement
An Indian law-governed agreement detailing terms and conditions for private equity investment in a target company through share subscription.
Download
Equity Distribution Agreement
An Indian law-governed agreement establishing terms for equity securities distribution, compliant with SEBI regulations and Indian corporate law.
Download
Equity Investment Agreement
An Indian law-governed agreement detailing terms and conditions for equity investment in a company, including share acquisition, investor rights, and governance structure.
Download
Employee Stock Options Agreement
An Indian law-governed agreement establishing terms for granting company stock options to employees, including vesting, exercise conditions, and regulatory compliance requirements.
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
