Shareholders are individuals who invest money in the company`s share and become owners of that share of the company. The agreement can be defined as a consensus between the parties on certain conditions relating to their work or to an article, and they are bound by such an agreement and can be applied against the parties who approve it. The shareholders` agreement (SHA) after the merger of the two definitions the shareholders` agreement can be defined as a consensus obtained by the shareholders of a company for the management of the work of the company, the sharing of shares, the affairs related to the company or not to the company. «A shareholders` agreement is an agreement between all or some shareholders of a company. It regulates the relationship between shareholders, the management of the company, the holding of shares and the protection of shareholders. They also determine how the business is run. [2] SHA is not regulated by a specific law in India and is therefore not mandatory for shareholders to make and conclude SHA. There is no restriction on the number of shareholders who can enter into an agreement according to the rules and regulations. It is sometimes said that we could design a statute to deal with all the cases that we would typically see in a shareholders` agreement. This is true, but there are some important reasons why shareholders more often choose to settle their mutual relations as shareholders through a shareholders` agreement and not just the articles of association.

These reasons are discussed in the next section. Most shareholder agreements determine the transactions that the enterprise carries out or proposes to carry out and contain provisions that determine the circumstances in which the enterprise may change the nature, nature or place of its activities. In addition, most shareholder agreements provide that the company`s activities are controlled by its board of directors. Article 80 is thus confirmed by Part I of the Statutes of Table A, which is one of the most important provisions of the Statutes. It has the effect of conferring on the board of directors of a company all the powers of the company that are not expressly reserved for the shareholders of the general meeting by the statutes or the laws of the companies. As a result, a wide range of management functions are entrusted to the Board of Directors. But arbitration also has its drawbacks. One party to the dispute under a shareholders` agreement may feel that the dispute could be resolved more quickly or effectively by a court, but the other party may insist that the matter be referred to an arbitrator and could obtain a court order suspending the court proceedings until the arbitration has been rendered. Another disadvantage of arbitration proceedings (depending, of course, on one`s own perspective) is that the arbitrator`s decision is usually made binding and cannot be challenged with very limited exceptions, whereas a decision of the Court of Justice or the High Court can normally be challenged in a higher court. The articles of association are a fundamental constitutional document of every company. Legally, the articles of association automatically bind the company and its members (Section 25 Companies Act, 1963), although the members are bound by the articles only in their capacity as shareholders of the company and not in other words.

On the other hand, other parties may consider that the most important idea is the possibility of requiring a person who has acquired shares as a promoter or employee or related to his employment to transfer those shares after the termination of employment. . . .