Company / Commercial Law
Business and company law underpins a large part of starting and running a business. This could be anything from choosing an appropriate business structure to formation and incorporation, to shareholders’ rights and obligations, to raising capital and obtaining investment, through to sale and exit.
Our network of corporate lawyers have expertise in the full life cycle of a company and are experienced with advising founders, shareholders, directors and external investors on their specific needs and obligations.
A shareholders agreement is an agreement you should have between the shareholders of a company. It creates a safeguard to prevent things from going wrong between co-founders and shareholders down the line. If the worst happens and things do go south with your shareholders, then a shareholders agreement helps you make sure your business doesn’t get ripped apart!
The agreement will:
- Set out the shareholders’ rights and obligations
- Explain the process and permissions required for the sale of shares in the company
- Describe how the company will be run
- Set out how decisions will be made
Legal Costs of Creating a Shareholders Agreement: £350 + VAT
A shareholders agreement creates a safeguard to prevent things from going wrong between co-founders and shareholders down the line.
You should also have Articles of Association which will cover the way your company is going to be run and how decisions will be made.
“A shareholders’ agreement can force a founder to sell their interest at a certain price. It’s also common for startup investors to insist that founders’ shares only acquire value over a prolonged period, which means that if a founder walks out he or she will have to sell some shares for nothing.”
– Simon Ewing
Terms And Conditions
Terms and Conditions AKA Terms of Business need to be made to mirror the individuality of your business. Whether you supply goods or provide services you better make sure that this is written into your terms and conditions or everything could crumble around you. It is vital that you have terms and conditions in place as soon as you start working with or selling to clients so that you have a record of the terms on which you will do business with them.
For sale of goods, this might include prices and your refund policy. For services, you will need to include your payment terms, the duration of the contract and how clients can terminate it. If you have a website for your business you will need to have website terms and conditions on your site which provide contact details for your business and information about products you sell.
Legal Costs of Creating Terms and Conditions: £350 + VAT
It is vital that you have terms and conditions in place as soon as you start working with or selling to clients so that you have a record of the terms on which you will do business with them.
Only 7% of Britons read the online terms and conditions when signing up for products and services.
Joint Venture Agreements
A joint venture agreement is an agreement between two companies who want to create a new entity and reap the benefits and resources. Each business may contribute capital, staff, offices and facilities, equipment or intellectual property such as brand names or inventions. Forming a joint venture gives you access to new, larger and more profitable markets. You can access greater knowledge, resources, share risk and increase your ability to produce more goods or services.
Like any exciting business opportunity, you need to make sure you have all your legal eggs in a basket by getting a joint venture agreement.
A joint venture agreement will include:
- Heads of Terms (name, entity, etc)
- Specific objectives for the new entity
- What each party will contribute in terms of resources or capital
- The rights of each party or shareholder
- Profit sharing mechanisms
- How the board will be structured
- How the agreement can be terminated
- Procedure for dispute resolution
Forming a joint venture gives you access to new, larger and more profitable markets so you need to make sure you have all your legal eggs in a basket by getting a joint venture agreement.
A contract doesn’t have to be a lengthy document – it can be as simple as an agreement made over email or even orally. Contractual disputes can arise from anywhere. They can be because of a failure to perform the services or provide the goods promised, failure to stick to timeframes, or failing to make payment. More complex disputes may relate to the buying and selling of companies or the actions of shareholders, directors or employees in breach of their agreements. You need to get contracts or at the very least written terms in place from the start of a business arrangement to give you the best possible clarity and reduce the possibility of things going wrong.
If You Need To Prepare Any Of The Above Legal Documents Or Have Further Questions Then Don’t Hesitate To Get In Touch With Us.