Below you'll find a list of all posts that have been tagged as “shareholders agreement”
What Does Vested Shares Mean And Is Vesting A Good Idea? 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 …
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 …
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 …
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 …
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 …
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 is it important to have a Shareholders Agreement? Here’s the scenario: you are a startup or an early stage business. You’ve created a great service concept, app, product. With a bunch of mates you’re flying off the seat of your pants, and therefore, rising to the top of your to-do list is probably not “need to sort out our …
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 …
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 …
‘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 …
