You got an offer that seems irresistible to you/your startup. This week on The Answers Blog we explore 3 points to consider before you append your signature to a Shareholders Agreement.
- Board Structure & shareholders’ matters
Some of the considerations you need to think about include whether or not each shareholder will be entitled to appoint an equal number of directors, the Company will have any independent directors, executive directors, managing directors, and if so how many? The quorum for meetings and whether there are any decisions that are board reserved or reserved for the members. Will there be any tag- along or drag along or pre-emption rights? Alternatively, you may engage a corporate lawyer to assist you go through some of these issues and their impact on your particular circumstances.
- Financing of the company
Some of the things you need to think about when it comes to financing include how the financing of the company will be structured in terms of options, how any further financing for the company will be funded and in what proportions. You may also need to think about the dividends payment policy of the company.
- Deadlock resolution
All the possible options for deadlock resolution at board and shareholder level should also be discussed and agreed on.
How Legal Answers Consulting can assist:
LAC can support businesses by advising on the legal implications and necessity or otherwise of entering into a Shareholders’ Agreement in your particular circumstances. We can also review the same for you or your business to help you make an informed decision. Please do not hesitate to reach out by e-mail to legal@legalconsulting.pro or to your usual contact at Legal Answers Consulting for any further questions you may have.