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Tag Along v/s Drag Along Rights When drafting agreements, Tag Along and Drag Along Rights are essential clauses that shape how investors and founders navigate ownership changes. Let's break down the impact from both perspectives: For Investors: 1.

Understanding Shareholder Agreements (SHAs) in M&A Did you know that the terms of your Shareholder Agreement (SHA) depend on the level of your stake acquisition in a company (SPA)? Here's a general overview of how SHAs differ based on acquisition ty

We've covered dilation and the Board of Directors(BOD). Now, let's delve into Tag-Along Rights—An Essential Topic Imagine your startup takes off! A major player wants to buy the company, and your majority shareholder is ready to cash in. But what ab

Shareholder Agreements: The Bedrock of Your Business A well-crafted shareholder agreement is crucial for a company's success. As a corporate lawyer with years of experience, I've seen firsthand the impact these agreements can have. Key clauses to c

Transfer Rights Clauses in SHAs from an Investor’s Perspective!! When investing in startups, a well-drafted Shareholders Agreement (SHA) isn’t just a formality, it’s the foundation that protects their financial interests and ensures strategic contro

Startup Founders: Is Your Shareholder Agreement Protecting Your Vision? Let's talk about a critical component that often gets overlooked: the Voting Rights Clause. As a founder, you've poured your heart and soul into your startup. But have you con

Demystifying the Ownership Structure Clause in Shareholder Agreements (SHA)📍 The Ownership Structure clause in your SHA is crucial. Here's why: 1. Defines Equity Distribution: It outlines who owns what percentage of the company. This impacts deci

Are you running a SaaS Business? As an experienced attorney in the field who has worked with many SaaS Business and helped them protect their rights, here is the list of some Essential Agreements for SaaS Companies: ●Terms of Service/User Agreement:

Anupam Mittal might be forced out of Shaadi.com? WestBridge had invested ₽166 crore in the Shaadi.com back in 2006, with the expectation of an exit within 5 years. Fast forward to today, and that exit still hasn't happened. Now, WestBridge is invoki

ROFR vs ROFO When structuring investment agreements, the Right of First Refusal (ROFR) and the Right of First Offer (ROFO) are two important clauses that can shape ownership transfers. Let’s explore how these rights work and their implications for b