India:
The 1st Thing Startups Should Do Is To Put In Place A Shareholders' Agreement Between The Founders
31 May 2023
Metalegal Advocates
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Putting in place a short, simple, shareholders' agreement
between the founders of any startup right from the first day (or,
at least, in this initial months) prevents future heartburn. Even
if it is an informal set of terms and conditions, it helps to have
it written down over an email or paper - this gives a reference
point to all stakeholders. At the end of the day, it is a
commercial venture that's being undertaken and would result in
assets and/or liabilities (in simpler words, profit and / or loss)
being created. It is important that these aspects do not come in
the way of or spoil relationships, the collective force of which is
running the startup and holds the potential of making it
successful.
Orignally published Jan 22 2023.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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