Quick Tips: Legal Documents For Business Founders

Share at:
AI Share Buttons - Mobile Logo Only
LinkedIn
X
Facebook
WhatsApp
Threads

Starting a business with co-founders and multiple shareholders can be quite a daunting proposition, particularly for those of us who are new to such a situation.

 

We’ve put together the following guide to help understand what legal documents are needed to get started:

 

1. Shareholders Agreement

Running a company is difficult, change occurs at rapid pace, emotional and physical demands may strain relationships, disagreements occur. A Shareholders Agreement provides a way to resolve disputes. It also lays down the rules between the shareholders of the company, it deals with directors duties, voting rights, share sale rules and investment decisions.

 

2. Assignment of Intellectual Property Agreement

In a nutshell, intellectual property law is the law that protects work and ideas. Having an intellectual property agreement allows for co-founders and employees to transfer their IP over to the company when they work for that company. This ensures that the company legally owns the intellectual property its employees create.

 

3. A vesting agreement

A vesting agreement is one between a company and employee when talking about company stocks. A business might make the decision to issue equity and shares of the business to its employees over time, but many businesses make the mistake of doing this without any process. A vesting agreement includes things like key performance indicators, employee milestones and vesting ‘triggers’ to make sure there is a process to issuing equity correctly and at the right time.

 

Unsure where to start? Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.

Share at:
AI Share Buttons - Mobile Logo Only
LinkedIn
X
Facebook
WhatsApp
Threads
You may also like
Recent Articles

Get the latest news

By clicking on 'Sign up to our newsletter' you are agreeing to the Lawpath Terms & Conditions

Share:

eBook

Download our eBook,
Hiring Your First Employee

Our eBook covers the necessary legal and financial considerations you should make when hiring your first employee.

You may also like

From Singh to Smith, discover the surprising names driving Australia’s entrepreneurial boom backed by data.
EasyCompanies has shut down, but your business is still safe. Learn what this closure means and how Lawpath can help you move forward.
Australia’s startup culture is getting younger, with Gen Z and Millennial founders driving the fastest growth in new businesses.