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Tech Startup Shareholders Agreement

13. 4. 2021, Written by 0 comment

As a starting point, shareholders could use the classic concepts of „Bad Leaver v. Good Leaver.“ If a shareholder withdraws for inappropriate conduct, which would allow the start-up to terminate that shareholder`s employment contract, that shareholder would be considered a „bad start“. In a „bad start“ situation, the start-up and/or other shareholders generally have the right to exchange the pensioner`s shares at a sharply reduced price (for example. B.dem initial purchase price). When a shareholder withdraws on the basis of the mutual decision of the shareholders or the shareholder withdraws due to circumstances outside the parties` control area, the outgoing shareholder is most often considered a „good outgoing“. It is worth being a „good descendant“ because the outgoing`s shares are most often cashed in at a much higher price compared to the „bad start“ situation. In a „good exit situation,“ the withdrawal of shares could be based, for example, on the market value of the shares. Yaima Seigley is a lawyer with Isaac Wiles (Columbus, Ohio), who advises start-ups and emerging companies on all aspects of creation, law and related business. It is available at (614) 221-2121 or by email at yseigley@isaacwiles.com. What will you do if there is a dispute over something in this agreement? In this section, you will explain this approach. Many startup founders decide that any dispute with the founding agreement will be settled by binding arbitration, but it`s up to you and your co-founders to decide what you want to do. Another recurring question is the role of the start-up itself – is it a real SHA party or not? Reviews end very differently, but from our point of view, the start-up itself should also be part of the SHA, as some SHA conditions also influence the startup itself, since the launch is not in itself linked to the SHA, if the start-up is not a real party.

Another solution is that the launch process is not a real part of the SHA, but that the launch is required in writing to comply with the SHA conditions that affect them. However, if you are the founder of a Finnish startup, you should always keep in mind that, although the startup is a SHA party, it cannot comply with the SHA if it meant that the start-up would not comply with the Finnish law on limited companies. It is also a factor that must always be kept in mind to ensure the best result with the SHA. If you`re holding on to this step because you`re not sure how you should name your start-up, read our guide to choosing a name for your start-up.

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