Does Your Business Have A Shareholders Agreement

Does your business have a shareholders agreement?

Linkilaw Legal Documents

What is a Shareholders Agreement?  A shareholders agreement is a legally binding contract between the shareholders that complements your company’s Articles of Association.  It is a private confidential document that does not need to be filed at the Companies House but some terms of which must be replicated in your articles to be fully effective. The main purpose of the …

What Does Vested Shares Mean And Is It A Good Idea?

What does vested shares mean and is vesting a good idea?

Linkilaw Legal Advice

No, we are not talking about questionable fashion choices today–we are talking about finances! Vesting in this scenario is the process by which a shareholder earns shares or stock options over a period of time. This terms will be determined in a Shareholders’ Agreement, but it is usually either over a period of years or when a specific milestone is …

How should equity be split between co founders

How should equity be split between co-founders?

Linkilaw Legal Advice

Equity split is one of the most important and controversial topics that you would need to discuss with your co-founder in the early stages of your business relationship. This is the moment where the arguments may arise. That’s why equity allocation and choosing the co-founders are very important. How should equity be split between co-founders?  Going into business with someone …

Tag Along Drag Along Rights Explained

Tag along drag along rights explained

Linkilaw Company Law, Legal Documents

There are many different aspects of a Shareholders’ Agreement. This is to explain what Tag Along and Drag Along rights are. What are tag along and drag along rights? A tag along provision also called ‘co-sale right’ is a clause that allows minor shareholders to ‘tag along’ with a larger shareholder or group of shareholders if they find a buyer …

Shareholders agreement

Shareholders’ Agreement: Everything You Need To Know

Linkilaw Legal Documents

A shareholders agreement is a legally binding contract between the shareholders of a company. A shareholders agreement determines the shareholders’ rights, responsibilities, privileges and protections. It can be used to protect investments, it creates a secure relationship among shareholders and maps out the running of a company. With a shareholders agreement there is clarity and certainty as to what can …

Why you need a shareholders agreement

Why You Need A Shareholders Agreement In Your Startup

Linkilaw Legal Documents

What is a Shareholder Agreement? A shareholders agreement should essentially be the cornerstone of any business venture between founders and partners. It is a legally binding document that sets out the structure of the company. A shareholders agreement can be among many people, not only the co-founders but anyone who has a potential interest in the company. The agreement should …

Co-founders Fall out

5 Reasons Why Co-founders Fall Out

Linkilaw Startup Advice & Tips

A remarkable statistic to throw your way… “65% of high-potential startups fail due to co-founders fall out” This statement was made by Noam Wessman, Harvard Business School Professor and author of The Founder’s Dilemma who states that co-founders fall out for many reasons, such as money, business strategy, and leadership. A simple solution to this problem is to create a …

why a shareholders agreement is important

5 Top Tips If Starting A Business With Friends And Why A Shareholders Agreement Is Important

Linkilaw Legal Documents

A very familiar founders path is to start a business with friends.  Hell, why not?  You want to work with people you know well, can trust and (hopefully) will enjoy the journey with; but.. Why a shareholder agreement is important?  Good corporate morale stimulates innovation and creative ideas, leads to happy staff and optimises business productivity (… all of which …

how a shareholders agreement will work for you

It’s Rude Not To Share: How A Shareholders Agreement Will Work For You

Linkilaw Legal Documents, Startup Advice & Tips

Starting a business is hard. Even harder when you go it alone. In fact, businesses that had more than one founder outperformed solo founders by 163%. Why is this? A Balance Of Skill It is impossible to be great at everything. When you start a business, you need a team with a breadth of skills to make sure that whatever …

shareholders agreement

Shareholders Agreement: How One Agreement Can Shape Your Business From Day 1 To Exit

Linkilaw Legal Documents, Startup Advice & Tips

‘The Only Mistake I Regret,’ Words Uttered From Every Startup Founder That Didn’t Have A Shareholders Agreement A Shareholders Agreement is your number one partner in the creation, management, and termination of your company. We don’t doubt the potential and strength of your company, but – trust us when we say this – things regularly turn nasty. Be prepared! If …