Validity of agreement between shareholders

Validity of agreement between shareholders

(1) An agreement entered into between the shareholders of a company in respect of the management, the operation of the company and the use of voting right conferred to them shall be binding on them.

               Provided, however, that if any provision of such agreement is prejudicial to the interest of the company or its minority shareholders, such provision shall ipso facto be invalid to the extent.

(2) The concerned shareholder shall submit two copies of the agreement entered into under Sub-section (1) to the company within fifteen days after the date on which such agreement was entered into. The company shall submit a copy of the agreement so received from the shareholder to the Office within fifteen days after the receipt of the same.