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Shareholders Agreement – Expertvuw
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Shareholders' Agreement (SHA) Drafting – Investor Rights, Founder Protection and Exit Terms

Last updated: 2 October 2026

An SHA governs how shareholders make decisions, transfer shares and exit. Expertvuw’s team drafts and reviews SHAs for founders, investors and family companies, and aligns the Articles of Association so the rights are enforceable.

Overview

What an SHA Covers

A shareholders’ agreement is a contract among a company’s shareholders (and often the company) setting out their rights and obligations beyond what the Companies Act, 2013 provides. It is common at fundraising rounds, in joint ventures and in family-owned companies.

Typical terms include board composition and nomination rights, reserved matters requiring investor consent, information rights, pre-emptive rights on new issues, anti-dilution protection, transfer restrictions such as lock-in, right of first refusal and right of first offer, tag-along and drag-along rights, founder vesting and non-solicit obligations, exit mechanisms and dispute resolution.

Indian courts have held that restrictions in an SHA should be incorporated into the Articles of Association to be binding on the company, so the AoA is usually amended alongside the SHA. Where investors are non-residents, FEMA rules on pricing and on guaranteed returns or assured exits apply.

Basis: Companies Act, 2013 (sections 5, 14 and 58); Indian Contract Act, 1872; FEM (Non-debt Instruments) Rules, 2019 (pricing and optionality); Arbitration and Conciliation Act, 1996. Last updated: 27 September 2026.

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What This Service Covers

What We Help With

1

Drafting or reviewing the SHA and term sheet

2

Board, voting and reserved matter clauses

3

Transfer restrictions and exit rights

4

Aligning the Articles of Association

5

Allotment, filings and FEMA reporting for the round

Key SHA Terms

Reserved matters

Decisions requiring specified shareholder consent.

ROFR / ROFO

Existing shareholders get priority on share sales.

Tag & drag

Minority can join a sale; majority can require others to sell.

Anti-dilution

Protects investors in down rounds.

AoA alignment

Rights should be incorporated into the Articles.

FEMA

Non-resident investors cannot get assured returns.

Common Issues

Common SHA Problems

SHA disputes usually surface at the next round or exit.

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Related Services

Related services

SHAs connect with these services.

Founders Agreement

Terms among co-founders.

MoA & AoA Alteration

Amending the Articles.

Private Equity Compliance

Compliance for PE deals.

VC Advisory

Preparing for venture funding.

Documents Required

Documents we need from you

Company Details

Deal Details

Our Process

How the Process Works

1

Term sheet

Review agreed commercial terms.

2

Draft

Prepare the SHA.

3

Negotiate

Work through comments.

4

AoA

Amend the Articles to match.

5

Close

Execute, allot shares and file forms.

6

Report

FEMA reporting where applicable.

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After Signing

After Signing

Run the company in line with the SHA.

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Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    What is a shareholders' agreement?

    A contract among shareholders setting rights on governance, share transfers and exit beyond the Companies Act.

    Key restrictions should be incorporated in the AoA to bind the company.

    Tag-along lets minority shareholders join a sale; drag-along lets the majority require others to sell.

    No. FEMA prohibits guaranteed returns or assured exit prices for non-resident investors.

    Typically at fundraising, in joint ventures and in companies with several shareholders.

    About Expertvuw

    Who Drafts Your SHA

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    ACS – Director, Expertvuw Management Pvt Ltd

    Agreements and policies are drafted by Expertvuw’s team for your review and negotiation. Where you need a legal opinion, dispute advice or representation, it is provided by independent advocates. Expertvuw is a corporate services company, not a law firm.

    Expertvuw Management Pvt Ltd