Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
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.
Are your GAIL India Limited shares now eligible for transfer to the IEPF Authority, or have the...
India's financial sector is changing due to advancements in technology and new regulations. GIF...
The Indian startup ecosystem, which is the third-largest in the world, is expected to become a...
India's startup ecosystem has recently experienced a rapid rise as a global powerhouse. Several...
In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced several changes to the...
Are you human?: 1 + 7 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Agreements that Mandate Payment of Stamp Duty Any instrument that records transaction requires stamp duty to be pai...
31 Jan, 2020
A Service Provider Agreement is a legally binding contract between a service provider and a client that establishes...
02 Aug, 2023