- comprehensively covers issues that matter for founders and for investors
- can be used to re-balance the rights and obligations of minority shareholders
An agreement for a company that is controlled by a single shareholder-director, probably the founder, who has the largest individual shareholding. Other minority owners retain all their statutory rights, but otherwise have no special protection.
An agreement for a JV, operated through a company formed for that specific purpose.
The project that will be undertaken could be anything. Examples are: a property renovation, design and creation of a consumer product, or buying a company in order to sell the assets.
Because the company is likely to focus on achieving a single outcome, particular emphasis in placed on exit arrangements, including re-structuring.
Includes the provisions that a large professional or institutional investor such as a business angel, venture capital or private equity investor would require to protect their investment.
It also considers the provisions of minority shareholders, who by virtue of the circumstances are likely to be the founders and friends and family of the founders.
Additional features to other documents include:
- drag along and tag along rights
- key man insurance
- rights of preference
- rights of first offer
- increased reporting requirements
An agreement where each shareholder is the owner of his or her own leasehold property within a building or scheme that is managed by the company.
It provides clear and practical routes through the contentious areas of who controls what, and leaves the owners with an arrangement that maximises efficient, democratic management of the communal areas of their property.