A term sheet in India is a preliminary transaction document that records the principal commercial and legal terms of a proposed investment, acquisition, merger, joint venture, loan or strategic transaction. It may be wholly non-binding, partly binding, or binding, depending on its language. Commercial terms such as valuation and proposed investment are usually made non-binding,...
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A shareholders agreement in India is a private contract between shareholders, and often the company, that regulates shareholding rights, transfer restrictions, management control, investor protection, exit rights, reserved matters, board representation and dispute resolution. The agreement should be consistent with the Companies Act, 2013 and the Articles of Association. The Supreme Court has recognised that...
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A founder agreement in India is a legally binding contract between startup founders that records equity ownership, founder roles, vesting, intellectual property assignment, decision-making rights, founder exit, confidentiality, dispute resolution and consequences of misconduct or abandonment. It is generally governed by the Indian Contract Act, 1872, the Companies Act, 2013, the company’s Articles of Association...
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