Direct Tax Services
Select Your Location
Table of Contents
Stock Agreement is a written agreement or instrument putting forth the restrictive terms of a stock i.e.a stock that is subject to standard transfer restrictions for private company stock and repurchase or forfeiture. The two focal points of entering into restricted stock agreements are
Restricted Stocks thus may be transferred only upon fulfillment of certain conditions mentioned in the agreement mostly that includes a continuous Service for a specific time period which is known as the Vesting Schedule
The Stock Agreement is considered to be a practical agreement so as to ensure the security to the investors who consider a company to be a vehicle of income and profits. For the founders, the company is an investment in the dreams. The bailing out of one founder is usually considered to be a necessity and also to ensure equal participation in the growth of the company.
Founders use restricted stock to ensure that every founder continues to contribute to the corporation. The founders thus impose restrictions upon themselves as per a vesting schedule and a Restrictive Stock Agreement, so that the first right to repurchase the stock lies with the company.
The investors prefer such agreements to safeguard their concerns that the founders don’t bailout from the company because an investor is putting its funds into the founders. Thus investors shall consider it in their interest that the founders continue to contribute to the company and will then demand a vesting schedule.
For more info related to Stock Agreement visit us at Enterslice.
Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.
Many investors use fixed deposits as their primary investment vehicle. Investors with a high-ri...
The main idea of CDS, which was initially to give banks a way to transfer credit exposure, has...
Black money has been the subject of heated political debate in India for a long time. Successiv...
The Apex Court pronounced a judgement in the case titled Tata Motors Vs The Brihan Mumbai Elect...
Since economies are moving towards digitalisation and making it feasible to conduct transaction...
The Alternative Investment Funds (AIFs) Pro-rata and Pari-Passu Rights Proposal Consultation Pa...
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Are you human?: 5 + 6 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Memorandum of Association or MOA is a corporate document which is filed with the Registrar of Companies during the...
15 Sep, 2021
CERTIFIED TRUE COPY OF RESOLUTION PASSED IN THE MEETING OF EXTRA-ORDINARY GENERAL MEETING (EGM) OF THE MEMBERS OF M...
23 Jan, 2018
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!