Alec Sarner

All League Offensive Lineman – Center

Start Up Business Shareholder Agreements

The startup and/or other shareholders should always have the right to repay the shares of a working shareholder when the service or employment contract of the working shareholder has been terminated – example, the employment contract of the programmer and the working shareholder, Adam is terminated and thanks to a well-written SHA, the startup has the right to cash in Adam`s shares. This type of shareholder agreement can be negotiated and signed between the founders even before the company is founded. A shareholders` agreement can protect existing shareholders by giving them the right to subscribe for other shares and therefore not to be diluted. An important part of creating a stable foundation for each startup is making sure that the key introductory documents are in place. The shareholders` agreement is one of those critical documents.

October 9, 2021 - Posted by | Uncategorized