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Founders Agreements: Splitting that Za

So, you have a million - nay - a billion-dollar idea you’re trying to get to market, but you don’t know where to start. For starters, building a strong foundation  might begin by defining the bus...

Overview of Founders’ Agreement

What is this document? The Founders’ Agreement serves as a blueprint for how a business will be run by the founders before the founders officially begin doing business together. It captures the u...

Overview of SAFE

Simple Agreement for Future Equity   What is this document?   The SAFE (Simple Agreement for Future Equity) is an agreement allowing a Company to raise equity from Investor(s). ...

Using Stock Options as Currency – The “Cashless Exercise”

  One of the most common strategies employed by start-up companies to leverage their limited cash resources and still have the financial resources to compete in the marketplace is to offer key...

Blog Bite: What Is the Aim of a Vesting Provision?

This article posted to our partner site Mondaq.com illustrates the importance of ensuring that vesting provisions do not create a conflict of interest. Vesting provisions can be used by investors ...

Blog Bite: How can investors use drag-along provisions to address their exit expectations?

This article posted to our partner site Mondaq.com discusses the practice of including "drag-along" rights in term sheets. Drag-along rights can be used by investors to compel shareholders subject...

As an Inventor, Should I Sign an Invention Assignment Agreement?

  An Invention Assignment Agreement, often known as an Intellectual Property (“IP”) Transfer Agreement, is an agreement where one party assigns its intellectual property rights to...

Raising Capital For Your Startup

  Every start-up founder should have a basic grasp of some of the ways they can secure financing for their company, so to that end let's take a crash course on some familiar and some not-so-fa...

Pre-emptive Rights – Who Do They Benefit?

What is a Pre-emptive Rights Clause? Pre-emptive rights clauses can protect existing shareholders from the dilution of their proportionate holdings, and is a type of protection sought by founders a...

Blog Bite: How Do I Negotiate a Share Purchase or M&A?

This article posted on our partner site Mondaq.com contextualizes the role of the letter of intent in the negotiation process, orders the series of events that take place in most negotiations invo...

Blog Bite: How Do I Conduct Due Diligence in a Share Purchase or M&A?

This article posted on our partner site Mondaq.com  After a term sheet in an asset or share purchase deal is signed, the parties will usually commence "due diligence". This article posted on our ...

When to say no: The Right of First Refusal

We are often asked about the right of first refusal clause (ROFR), and so we thought it would be useful to survey the features of a right of first refusal clause here. For a business with sharehold...

Liquidation Preference: Cashing Out

A liquidation preference is a commonly requested investor term. The idea around a liquidation preference is that the investor will receive their funds out of the business prior to the existing shareho...

Authorizing vs. Allocating vs. Issuing Shares in your Company

Company owners or investors, when drafting or digging through the details of the ownership of company shares, will come across the concept of authorized shares, issued shares and sometimes allocated (...

Dividends: What, When, How?

Dividend structuring and timing are making headlines presently. (For example:  The Globe and Mail:  Ottawa to rein in income 'sprinkling' by wealthy Canadians and the Financial Post: What the ...

When forming a company, how many shares should be issued, and at what price?

by Geralt on Pixabay   There's no magical number, but if you are forming a company with a single shareholder then one class of shares with 100 shares issued at 1 cent each (= $1) is fine. Add...

You Say Shares, I Say Stock: Making Sense of Investing Terminology

Introduction You are meeting with your financial advisor for the first time. Your friends hectoring you about missing out on Facebook’s IPO has not stopped despite the fact it happened half a decad...

What voting rights do non-voting shareholders have?

A common question that entrepreneurs/inventors have when incorporating is how to structure the business. The options for structuring a business can be overwhelming, especially when it come...

Overview of Shareholders Agreement

Overview of Shareholders Agreements   What is this document? A Shareholders’ Agreement (sometimes known as a Stockholder Agreement) governs the relationship between the corporation an...

What legal documents are required to connect an inventor with an investor?

Startups depend upon funding, so preparing the right documents can help you obtain the funding you need. Due Diligence No matter what stage or type of funding is at hand, the biggest thing...

Blog Bite: What problems can arise when a company does not draft a shareholders’ agreement?

This article posted on our partner site Mondaq.com presents a situation when a company did not have a shareholders' agreement, the circumstances that followed and how the shareholders' agreement cou...

Legal Tips & Tricks: Negotiating an Agreement should Start with a Blank Page

When entering into an important contract, take the time to discuss with your business partners, advisors and legal counsel, to make sure that you are clear about your opportunities and risks.  In thi...

Blog Bite: What is the underlying advantages of a shareholders’ agreement?

This article posted on our partner site Mondaq.com explains the common clauses that are found in a shareholders' agreement and how they are beneficial in the event it is required. This comes to y...

Blog Bite: When and how should you execute an effective unanimous shareholders’ agreement?

This article posted on our partner site Mondaq.com discusses the importance of executing a unanimous shareholders' agreement (USA) to deal with matters of particular significance to the shareholders...

Paying With Shares: The Employer’s Perspective

Introduction Your startup is thriving but you still have more goodwill than cash, and you need to retain your talent. You can’t afford to raise their pay - what can you do? Many c...
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