Startup Stockholder Agreements
Often, startups and seed companies manage to get a shareholder pact until it`s too late. This article was written by Pablo Mancéa, co-founder of Delvy Law – Finance, a Barcelona-based law firm, which aims to meet the legal, financial and tax needs of technology start-ups and disruptive companies. A take-off runway is a bit like a roller coaster. The future is unknown and, in most cases, in the first two or three years of the business, many important changes can occur for a variety of reasons. Although directors are responsible for the day-to-day management of a company`s affairs, the shareholders` pact may give shareholders the right to approve certain decisions that they feel are not left to the discretion of directors (for example. B, a global pivot of the company`s activity, changes to the company`s statutes, etc.). If your start-up does not have a shareholders` pact and a dispute arises, it is an additional cost in litigation and settlement negotiations that the shareholders` pact would have been at the beginning. A shareholder pact has been useful mainly because it creates a sense of commitment between the co-founders of a startup. The question of unanimous approval. A critical issue often found in shareholder agreements is the requirement that all business decisions require the agreement of all founders.
This is not a problem until there is disagreement between the contractors. In the absence of a formal dispute resolution process, these disputes will result in a freeze on the dead whenever there is disagreement. Not only does this create tension and frustration among founders, but it can also hinder business growth and development, as business owners are not able to effectively address important issues and make decisions. It is highly recommended to provide technical advice on shareholder agreements. Everyone who works in the company needs to understand what they accept, so that there can be no more misunderstandings in the future. We invite all interested parties to study more about this subject, read blogs and listen to the past experiences of experienced entrepreneurs. However, as is often the case when a startup takes off, the founders will be busier and have less time to conclude such an agreement. One of the most remarkable features of the startup community is the strong and positive outlook of these emerging companies. It is this positive energy that drives innovation and attracts investors and end-users.