Why is it important?
- Ensures the running of the company and the rights and responsibilities of shareholders are properly thought through.
- Ensures clarity around the decision-making process at board and shareholder level.
- Reduces the potential for conflict and governs procedures for dispute resolution.
- Founders’ agreement between all shareholders and founders and the start-up company.
How can we help?
- Founders’ agreements are not always appropriate if the start-up is likely to receive angel or other substantial funding in the near future as the investor(s) is/are likely to want to replace any existing agreement with a new, negotiated agreement.
- The cost of a founders’ agreement will vary depending on the complexity of the arrangements. Please note that investors may require the founders to enter into “their” form of shareholders’ agreement on completion of the investment. Therefore, if an investment is imminent, you may want to hold off instructing lawyers to draft a founders’ agreement.
Typical legal fees: £1,500- £4,500