Our Founders’ Pack includes:
A call before we start drafting to discuss the best structure for your agreements and advise on implications, risks and benefits of each option
A shareholders’ agreement (with or without a vesting schedule)
A directors’ agreement
A call once we deliver your documents to go through them with you in detail
Unlimited responses to your legal queries
Shareholders' Agreement with Vesting Schedule
All prices on our site exclude VAT.
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WHO IS THIS PACK FOR?
If you have more than one shareholder and director, this pack is essential.
SHAREHOLDER AGREEMENT (£970)
When you start a company with more than one shareholder, investing in a Shareholders’ Agreement is without a doubt, one of the best decisions you’ll ever make. The reality is, co-founders are only people. People are very different, in their ways of working, their visions, their willingness to change direction, their talent at selling their product and their ability to get stuff done. They also go on to have families, divorce their partners and decide to travel around the world. Shareholder relationships are like every other human relationship and that means, they change. A Shareholder’s Agreement will help protect your company from being forced to change too.
A Shareholder’s Agreement can also regulate when each shareholder gets their shares (vesting schedule), whether there’s a grace period before any shares vest (cliff) and what happens if one of the shareholders doesn’t deliver what they promised.
It also regulates how the company is managed and controls when and how shares are transferred to prevent a scenario where the investor of your dreams comes along and a shareholder refuses to sell or dilute their shares. It also protects you in the event a shareholder wants to leave so that you have a right to buy their shares first before they offer them to someone else.
A Shareholders’ Agreement can also provide a mechanism whereby a person’s shareholding is linked to their employment (e.g. their Directorship), so that if they were to leave they must offer their shares up for sale. It can also include different valuation mechanisms depending on the circumstances under which the relationship with the company comes to an end so if the leaving shareholder is a ‘bad leaver’ (i.e. they leave under bad circumstances) then you only pay a nominal price for their shares.
Finally, if you’re going for investment, an investor will often want to see that you have your “house in order” and that you have documentation in place that regulates the relationship between you and your co-founder (even if they want you sign another shareholders’ agreement once they’ve invested in your company).
DIRECTOR’S SERVICE AGREEMENT (£640)
A company director has certain rights and obligations arising as an employee as well as a director of a company. For this reason, it is imperative that you have a Director's Service Agreement in place.
A director’s service agreement includes important information regarding the Director's appointment commencement date, what the duties of the director are, a right for the company to monitor the director’s email and other communications carried out on company equipment and limitations on the director in engaging in business or professional activities outside the employment, where appropriate.
A Director's Service Agreement will protect all parties, including the company from a Director that acts negligently or beyond their remit and will set out clear guidelines for an eventuality where the directorship should no longer continue.
Great experience!! After being in contact with several law firms throughout the past few months we chose to work with The Law Boutique. I most definitely do not regret this decision! As opposed to other companies, TLB made sure all necessary legal documents are specifically tailored to the needs of our start-up