Once a Company or any such body corporate is formed, the dynamic of the relationship between the Founders changes as there is a third legal entity i.e. the body corporate in the equation. Hence, a Shareholders Agreement becomes necessary if the Founders, who are now the shareholders of the Company, envisage any special rights, duties, liabilities and obligations for themselves other than those provided in the Companies Act.
To have a comprehensive understanding of Shareholders Agreements and the important clauses in them, download and read the below article.
Comments