CONSIDERING that ABC is one of the founding shareholders and that he is the chairman and director of a company founded in India, called `2. In India, digitization is still in the preludes, for which it will be wise to execute and record it by manual signature in front of the registrar. 2. Limit your stake in the company only as an investor or also have a say in management. 1. You have to make many legal bases for an investment of Rs.25 Lakhs in a start-up. This memorandum of understanding made this _____________between ABC ____________day with his office at__________________, India referred to as “ABC” (which is the term “ABC Group” unless it is repugnant to the context or importance of serving and joining itself and other current shareholders of the __________________Pvt. Ltd. and their respective heirs, executors, directors and assignments) of a party and mr. XYZ with his office at_____________________. (Hereafter referred to as “XYZ,” the term “XYZ Group” unless they are repugnant to the context or importance of this group and do not include its nominees to the extent covered by this party and their heirs, executors, directors and beneficiaries of the assignment) of the SECOND PART; Under Indian law, a written signature is not necessarily required for a valid contract – contracts are generally valid when legally qualified parties enter into an agreement, whether they accept verbally, electronically or in a physical paper document. The Information Technology Act, 2000, expressly confirms that contracts cannot be refused because they are concluded electronically.
In order to prove a valid contract, parties sometimes have to present evidence in court. Leading solutions for digital transaction management can provide authorized electronic records under Section 65B of the Evidence Act, 1872, to support the existence, authenticity and valid acceptance of a contract. AND CONSIDERING that the parties wish to register in writing the terms of their agreement, you want to be able to conclude an agreement with all the terms of your deal by taking care of your interests and needs. 4. You will be careful to register the above agreement in order to avoid future legal problems in this regard. 2) It is not necessary to register the investment agreement Most investors will require a share in a company as by default. Depending on the amount, this can vary between 1% and a majority stake of 51% or more, but it depends entirely on the amount that will be invested in relation to the total value of the business. In addition, showing that you have confessions about such things will generate more confidence in you as an investor or start-up businessman during negotiations.
Any agreement on this matter may be reviewed by an expert prior to signing and legal advice must be available, including the need to record the facts. While legal advice is of the utmost importance to ensure that any investment contract goes overboard, you should always know what is being asked of you in order to decide whether such provisions are acceptable or not. 6. It was agreed that the entity would not further dilute its own capital or the use of financial resources by any other person or would agree to assign shares to another person without XYZ`s consent.