Download - TOFI Feb. 17, 2015 Legal: Hassan
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Corporate Law for Founders
Kamal Hassan Feb 17, 2015
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Sole Proprietorship
Partnership
Corporation ✔
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Shareholders
Board of Directors
Officers
Corporation
Responsible
Liable
Protected
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Who owns the company?
What does the company own?
Risk of any lawsuits?
Only three legal questions really matter
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Who owns the company?
“Cap Table”
Screen shots from IncMind.com
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IncMind special offer for FI Toronto
Free for 2015
1. Create free account (freemium) 2. Email [email protected] your company name (free)
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Who owns the company?
“Cap Table”
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Who owns the company? Debt holders > Shareholders
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Who controls the company?
Screen shots from IncMind.com
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Who owns the company?
What does the company own?
Risk of any lawsuits?
Only three legal questions really matter
✔
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What does the company (really) own?
Assets Knowledge Relationships
Possession (and contracts) IP transfer, NDA, non-competition (contracts) Contracts
Screen shots from IncMind.com
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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
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Who owns the company?
What does the company own?
Risk of any lawsuits?
Only three legal questions really matter
✔
✔
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In compliance with laws?
Complying with contracts?
Contracts cover everything?
Risk of any lawsuits?
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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
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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?
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Who owns the company?
What does the company own?
Risk of any lawsuits?
Only three legal questions really matter
✔
✔
✔
+ free account on IncMind