Decoding shareholders agreement (SHA) [eLagaan Whiteboard Friday]

Before a startup receives the actual investment amount in their bank account, the investors, founders and startup execute a share subscription & share holders agreement (SSSHA or SHA). This is an important and elaborate legal document which is binding on all sides.

The current episode of eLagaan Whiteboard Friday looks at critical components of a SHA and how it could impact not just the controls or investor relationship but also the day to day working of startups.

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