Tag: Shareholders’ Agreements in Private Equity Deals: Control

Jab private equity ya VC investors company me aate hain, toh simple share purchase ke sath-sath ek detailed Shareholders’ Agreement (SHA) sign hota hai. Yeh document decide karta hai ki board me kaun baithega, kaun kya vote karega, aur future me kaise exit hoga. Common clauses: Reserved matters – jinke liye investor consent mandatory (new debt, big capex, change in business, etc.), Anti-dilution protection – future down-rounds me investor ka percentage unfairly dilute na ho, Tag-along and drag-along rights – sale ke time minority/majority ko protection ya power, Exit rights – IPO, strategic sale,...