Our Founder's Pack includes the following:
Director's Service Agreement
All prices on our site exclude VAT. Scroll down to find out more.
WHY YOU NEED OUR FOUNDERS' PACK
SHAREHOLDER AGREEMENT (£750 + VAT)
When you start a company with more than one shareholder, investing in a Shareholders’ Agreement is without a doubt, one of the best decisions you’ll ever make. The reality is, co-founders are only people. People are very different, in their ways of working, their visions, their willingness to change direction, their talent at selling their product and their ability to get stuff done. They also go on to have families, divorce their partners and decide to travel around the world. Shareholder relationships are like every other human relationship and that means, they change. A Shareholder’s Agreement will help protect your company from being forced to change too.
A Shareholder’s Agreement can also regulate when each shareholder gets their shares (vesting schedule), whether there’s a grace period before any shares vest (cliff) and what happens if one of the shareholders doesn’t deliver what they promised.
It also regulates how the company is managed and controls when and how shares are transferred to prevent a scenario where the investor of your dreams comes along and a shareholder refuses to sell or dilute their shares. It also protects you in the event a shareholder wants to leave so that you have a right to buy their shares first before they offer them to someone else.
A Shareholders’ Agreement can also provide a mechanism whereby a person’s shareholding is linked to their employment (e.g. their Directorship), so that if they were to leave they must offer their shares up for sale. It can also include different valuation mechanisms depending on the circumstances under which the relationship with the company comes to an end so if the leaving shareholder is a ‘bad leaver’ (i.e. they leave under bad circumstances) then you only pay a nominal price for their shares.
Finally, if you’re going for investment, an investor will often want to see that you have your “house in order” and that you have documentation in place that regulates the relationship between you and your co-founder (even if they want you sign another shareholders’ agreement once they’ve invested in your company).
DIRECTOR'S SERVICE AGREEMENT (£650 + VAT)
Where you employ a person or appoint a company shareholder to be a Director of a company, you are entrusting that person to manage the business effectively and successfully. A Director will have access to the company’s most valuable and confidential information including your source code, business plan, strategy, employee data and client list.
Yet despite this, it is surprising to see that many businesses do not put in place suitable documentation to protect the company should the relationship between the business and Director break down.
Directors are firstly an employee of the business and secondly (if applicable), a shareholder. It is important to differentiate those roles separately. Without any clear contract that sets out how various situations will be dealt with, it can be very difficult to handle the difficult situation where you wish to terminate a Director’s employment because the process of removing the Director may be difficult to carry out smoothly, What’s more, their shareholding will continue unaffected even if they are moved as a Shareholder. If a former disgruntled Director stops shareholders’ resolutions by veto, then this will cause disruption to the business and even damage.
A Director’s Service Agreement would also include notice period, non-compete clauses so they can’t go and work for a competitor immediately after they go, other restrictive obligations including stopping them from taking your client list with them and disclosing any confidential information.
It is therefore vital for a business to have a Director’s service agreement in place to protect the business.
YOU CAN BUY EACH DOCUMENT INDIVIDUALLY BY CONTACTING US DIRECTLY.
ALL PRICES DISPLAYED ON OUR SITE EXCLUDE VAT.