tofi feb. 17, 2015 legal: hassan

Corporate Law for Founders

Kamal Hassan Feb 17, 2015

Sole Proprietorship

Partnership

Corporation ✔

Shareholders

Board of Directors

Officers

Corporation

Responsible

Liable

Protected

Who owns the company?

What does the company own?

Risk of any lawsuits?

Only three legal questions really matter

Who owns the company?

“Cap Table”

Screen shots from IncMind.com

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Free for 2015

1.  Create free account (freemium) 2.  Email kamal@incmind.com your company name (free)

Who owns the company?

“Cap Table”

Who owns the company? Debt holders > Shareholders

Who controls the company?

Screen shots from IncMind.com

Who owns the company?

What does the company own?

Risk of any lawsuits?

Only three legal questions really matter

✔

What does the company (really) own?

Assets Knowledge Relationships

Possession (and contracts) IP transfer, NDA, non-competition (contracts) Contracts

Screen shots from IncMind.com

Local Laws (i)  is contract legal? (ii)  if there is no contract

[A] promises to [give X] [to B]

Contracts

[if B does Y] … if … and … if … ... if … before … by … and …

Local Courts (or Arbitrator)

Contracts law

Who owns the company?

What does the company own?

Risk of any lawsuits?

Only three legal questions really matter

✔

✔

In compliance with laws?

Complying with contracts?

Contracts cover everything?

Risk of any lawsuits?

Contracts … between friends?

I’m working harder and you have more

I’m tired of this, and so is my husband

I can’t take this any more, I quit

Signs happily Signs awkwardly Renegotiates See you in court

Cofounders? Vesting!

Vesting If I or my cofounder leave the company, for any reason, before February 1, 2019, the company has the right to buy back our ‘unvested’ shares

at the same price we paid for them. www.incmind.com/blog

4 year vesting, 1 year cliff

No! Shotgun?

Who owns the company?

What does the company own?

Risk of any lawsuits?

Only three legal questions really matter

✔

✔

✔

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