tofi feb. 17, 2015 legal: hassan
TRANSCRIPT
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”
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Who owns the company?
“Cap Table”
Who owns the company? Debt holders > Shareholders
Who controls the company?
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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
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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
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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