Anti-dilution protections: what you need to know
From start-ups to established businesses, companies will often go through a series of equity financing rounds with multiple investors. With each round of [glossary_exclude]financing[/glossary_exclude], the company issues new shares to the new investors which in turn reduces the existing shareholders’ ownership percentage of that company. This is referred to as a “share dilution”. [glossary_exclude]If, at a new round of financing, shares
General Partnerships: key provisions in partnership agreements and why they are important
When two or more individuals decide to engage in business, the corporate structure that will govern their relationship is the first and most important consideration. In a general partnership, two or more ‘persons’ which could be individuals, corporate entities, or both, conduct a business in common with a ‘view to [glossary_exclude]profit[/glossary_exclude]’. It is important to distinguish a general partnership from
Share transfer provisions: what are they and why do they matter?
You may have already come across [glossary_exclude]share[/glossary_exclude] transfer provisions when you first incorporated your company. These provisions are most commonly found in the company’s articles of association and shareholders’ agreements, but also in buyout service agreements and investment agreements. Let’s take a look at what those provisions are and why they are important. What do your Articles say? Under the Companies Act
The Articles of Association: why are they important and what should be included?
The articles of association – or simply the articles – is a fundamental constitutional document for companies that are incorporated and registered in England and Wales which is required under the Companies Act 2006. The articles establish the core corporate governance rules which regulate the company’s internal affairs, including the appointment and removal of directors, issue and transfer of shares,
Leaver provisions: what constitutes a “Good” or a “Bad” Leaver ?
Founders – the original shareholders of a company – are the driving force behind the company’s success as they contribute their skills and knowledge to expand the business. As the company grows, attracting new investment and talent, the [glossary_exclude]founders’[/glossary_exclude] ownership of the controlling stake in the company may not be reflective of their contribution at that new stage of development