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
Majority and minority shareholder protection: drag along and tag along rights
[glossary_exclude]Many start-ups and joint ventures with a limited number of shareholders are often set up with the ultimate goal to sell the company to a third-party buyer in the future. This goal is achieved when the entire issued share capital[/glossary_exclude] (all shares) of the company is transferred to a new owner. But what happens when the shareholders cannot agree on