Draft Shareholders Agreement India

These privileges create a right in favour of one or more shareholders to act or abstain in a certain way in a series of predefined events. The parties to a shareholders` agreement are free to introduce an arbitration clause having their registered office outside India and/or a law other than India, as long as one of the shareholders` parties is not established. Any personal or private right can be invoked by arbitration, and the same is upheld by the Bombay High Court to Messer Holdings Limited v Shyam Madanmohan Ruia, contrary to its decision in Western Maharashtra Development Corporation Ltd. v. Bajaj Auto Ltd. Given the frequent market fluctuations, a correct valuation of the company`s shares is extremely important for the fate of the company. Valuation methods and approaches are precisely defined in the Indian Shareholders` Agreement.

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