Shareholder Subscription Agreement Template for India

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Shareholder Subscription Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Shareholder Subscription Agreement

"I need a Shareholder Subscription Agreement for a Series A investment round where a foreign venture capital firm will invest USD 5 million for 20% preferred shares in my Indian technology startup, with the deal expected to close by March 2025."

Document background
The Shareholder Subscription Agreement is a crucial document in Indian corporate law practice, used when a company seeks to issue new shares to investors in exchange for capital investment. It's particularly important for private companies raising funds through equity financing, whether from domestic or foreign investors. The agreement must comply with the Companies Act 2013, SEBI regulations, and FEMA rules (if foreign investment is involved). It typically includes detailed provisions about share valuation, payment mechanisms, representations and warranties, conditions precedent, and post-subscription rights and obligations. This document is essential for protecting both the company's and investors' interests while ensuring regulatory compliance in the Indian jurisdiction.
Suggested Sections

1. Parties: Identifies the Company, the Subscriber(s), and existing shareholders if relevant

2. Background: Recitals explaining the context of the subscription, company's business, and purpose of the agreement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and rules of interpretation

4. Subscription and Allotment: Details of shares being subscribed, subscription price, and allotment terms

5. Consideration and Payment Terms: Specification of payment amount, method, and timing for the subscription

6. Conditions Precedent: Conditions that must be satisfied before share subscription becomes effective

7. Closing: Process and requirements for completing the subscription transaction

8. Representations and Warranties: Statements of fact by both company and subscriber about their capacity, authority, and relevant circumstances

9. Covenants: Ongoing obligations of parties post-subscription

10. Term and Termination: Duration of agreement and circumstances allowing termination

11. Confidentiality: Obligations regarding confidential information

12. Notices: Process and requirements for formal communications between parties

13. Governing Law and Jurisdiction: Applicable law and courts for dispute resolution

14. General Provisions: Standard boilerplate clauses including amendments, waivers, severability

Optional Sections

1. Multiple Closing Provisions: Used when subscription will occur in multiple tranches or rounds

2. Tag-Along Rights: Include when minority shareholders need protection in case of majority stake sale

3. Drag-Along Rights: Include when majority shareholders want right to force minority to join in sale

4. Anti-Dilution Protection: Include for protecting investors against future dilutive issuances

5. Foreign Investment Compliance: Required when subscribers include foreign investors

6. Board Nomination Rights: Include when subscribers are getting right to nominate directors

7. Pre-emptive Rights: Include when subscribers should have rights in future funding rounds

8. Information Rights: Include when subscribers need specific rights to company information

9. Exit Rights: Include when subscribers need specific exit mechanisms or guarantees

Suggested Schedules

1. Schedule 1 - Company Information: Details of company including corporate information, capital structure, subsidiaries

2. Schedule 2 - Subscription Details: Detailed breakdown of shares, price, payment terms

3. Schedule 3 - Conditions Precedent: Detailed list of all conditions to be satisfied before closing

4. Schedule 4 - Company Warranties: Comprehensive list of company representations and warranties

5. Schedule 5 - Subscriber Warranties: Comprehensive list of subscriber representations and warranties

6. Schedule 6 - Closing Checklist: List of documents and actions required at closing

7. Schedule 7 - Form of Share Certificate: Template of share certificate to be issued

8. Schedule 8 - Board Resolution Format: Template of board resolution for share allotment

9. Appendix A - Deed of Adherence: Format for new shareholders to join existing agreements

10. Appendix B - Disclosure Letter: Exceptions to warranties and representations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Technology

Manufacturing

Financial Services

Healthcare

Real Estate

E-commerce

Retail

Infrastructure

Education

Energy

Telecommunications

Media and Entertainment

Professional Services

Biotechnology

Agriculture

Relevant Teams

Legal

Finance

Corporate Secretarial

Compliance

Corporate Development

Investment

Board of Directors

Executive Leadership

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Company Secretary

Investment Manager

Corporate Lawyer

Legal Counsel

Finance Director

Investment Director

Compliance Officer

Private Equity Manager

Venture Capital Manager

Corporate Finance Manager

Board Director

Managing Director

Investment Banker

Financial Controller

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Advance Subscription Agreement

An Indian law-governed agreement for advance funding in exchange for future share issuance, typically used in early-stage investments.

find out more

Private Equity Fund Subscription Agreement

An Indian law-governed agreement detailing an investor's subscription and capital commitment to a private equity fund, including investment terms and regulatory compliance requirements.

find out more

Subscription Service Contract

An Indian law-governed agreement establishing terms and conditions for subscription-based services, including service delivery, payment terms, and compliance requirements.

find out more

Short Form Subscription Agreement

A concise agreement governed by Indian law that establishes terms for subscription-based services, suitable for standardized service offerings.

find out more

Fund Subscription Agreement

A legally binding agreement under Indian law that governs an investor's subscription to units or shares in an investment fund, subject to SEBI regulations and securities laws.

find out more

Common Stock Subscription Agreement

An Indian law-governed agreement outlining terms and conditions for investors to purchase a company's common stock, subject to Companies Act 2013 requirements.

find out more

Software As A Service Subscription Agreement

An Indian law-governed agreement establishing terms for cloud-based software service provision, including service levels, data protection, and compliance requirements.

find out more

Convertible Note Subscription Agreement

An Indian law-governed agreement for issuing convertible notes to investors, detailing investment terms, conversion rights, and regulatory compliance requirements.

find out more

Unit Subscription Agreement

An Indian law-governed agreement documenting an investor's subscription to units in an investment fund, including key terms and regulatory compliance requirements.

find out more

Monthly Subscription Contract

An Indian law-governed agreement establishing terms for monthly subscription services, including payment terms, service standards, and compliance requirements.

find out more

Note Subscription Agreement

An Indian law-governed agreement detailing terms and conditions for investors' subscription to company-issued notes, including subscription amount, interest rates, and regulatory compliance requirements.

find out more

Subscription Service Agreement

An Indian law-governed agreement establishing terms for subscription-based service delivery, including payment terms, service levels, and mutual obligations.

find out more

Subscription And Shareholders Agreement

An Indian law-governed agreement that regulates share subscription terms and ongoing shareholder relationships, combining investment and governance provisions.

find out more

Loan Note Subscription Agreement

An Indian law-governed agreement documenting terms for investment in company-issued loan notes, including subscription, interest, repayment, and security terms.

find out more

Shareholder Subscription Agreement

An Indian law-governed agreement detailing terms and conditions for new share subscription, including share details, price, and investor rights.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are 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

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.