Document background
The Venture Capital Shareholders Agreement is a crucial document used when a company receives venture capital investment in Germany. It serves as the primary agreement governing the relationship between the venture capital investors, the company, and its existing shareholders. The document must comply with German corporate law requirements while incorporating international venture capital market standards. It typically follows either GmbH (limited liability company) or AG (stock corporation) regulations, depending on the company's legal form. The agreement covers essential aspects such as corporate governance, share transfer restrictions, anti-dilution provisions, and exit rights, while ensuring compliance with German mandatory corporate law provisions. This document is particularly important as it balances the interests of new investors with those of existing shareholders while providing a framework for future growth and potential exits.
