INVESTOR AGREEMENT

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Chandra Mohan

Secretarial assistant

37 Points Posted on 03 March 2011

Hi ,

Can any one tell what is the Investor Agreement and in what cases it binds to company.

Replies (2)

Jaideep

Service

1373 Points Posted on 03 March 2011

Hi,

It can be in any form of agreement where investor agrees to invest in the company on certain terms and conditions. As they invest in th company they take some special rights such as Appointing their director on the Board, their approval for any sort of major amendments including increasing paid-up capital, merger, etc. All these powers are included by way of agreement.

Normally they invest in the unlisted company which is having potential to grow. They remain in the company for some period after which they insist for listing of the shares in SE for their exit. They invest for the sole purpose of return they never intent to control the Compnay.

For more clarification, plz comment

Regards

Jaideep Pandya

Chandra Mohan

Secretarial assistant

37 Points Posted on 04 March 2011

Thanks Jaideep,

Can company binds to the investor agreement?

Originally posted by : Jaideep

Hi,

It can be in any form of agreement where investor agrees to invest in the company on certain terms and conditions. As they invest in th company they take some special rights such as Appointing their director on the Board, their approval for any sort of major amendments including increasing paid-up capital, merger, etc. All these powers are included by way of agreement.

Normally they invest in the unlisted company which is having potential to grow. They remain in the company for some period after which they insist for listing of the shares in SE for their exit. They invest for the sole purpose of return they never intent to control the Compnay.

For more clarification, plz comment

Regards

Jaideep Pandya