Shareholder Agreements are our core focus. We prepare many Shareholders Agreements each month. We see both sides because we frequently advise both founders as well as early stage investors. We know the key terms you should be looking for as founders or investors and we will protect your legal position in negotiations.
Why have a Shareholder Agreement?
Shareholders agreements are critical to the success of your business. Get the legal terms correct and you avoid future problems.
Our Shareholders Agreements are drafted specifically for your business, so they are appropriate for co-founders, SEIS/EIS/seed investors, venture capital investors, series A, grant & government funding initiatives, charitable investment.
Shareholder Agreements are often referred to as subscription and investment agreements.
Shareholders Agreements protect privacy because they are never available to the public, unlike your company articles of association.
Key terms in Shareholder Agreements
Shareholder Agreements govern the basic rights and contributions of the parties. They specify the amount invested and number of shares (pre and post money) and also:
Non cash contributions of the founders & investors (sweat equity)
Warranties about the current state of the business
Intellectual property assignments
Minority investor protections
Share vesting and buy backs
Tag/drag along rights
Performance targets and Exit events
Share structures that we frequently advise on are single shares, preference shares, alphabet structures, anti-dilution protection, founder & employee vesting schedules.
If you’re launching an SEIS/EIS business, it’s critical your SHA is compliant. We can help with that. If you are pitching to VC & professional investors they will try to force their terms. We can help protect you in those negotiations. If you are scaling up and looking for a more sophisticated SHA. We can add terms to your existing contracts.
Our Shareholder Agreement Templates
All of our SHA templates are maintained and incorporate the latest industry trends from founder and investor perspective. We thought you should know that many lawyers start here.