Legal rules relevant to  start-up companies and VC
  LLC OR PUBLIC LIMITED COMPANY – CORPORATION <ul><li>FOUNDING CAPITAL  </li></ul><ul><li>DECISION MAKING AND GOVERNANCE  ...
ARTICLES OF ASSOCIATION  <ul><li>FOUNDING CAPITAL </li></ul><ul><li>SHAREHOLDERS MEETINGS  </li></ul><ul><li>MANAGEMENT - ...
  SHAREHOLDERS AGREEMENT <ul><li>PROVIDES FLEXIBILITY  </li></ul><ul><li>THE PARTIES CAN REGULATE THEIR RELATIONSHIP IN MO...
KEY ARTICLES  <ul><li>APPOINTMENT AND DISMISSAL OF KEY MANAGERS </li></ul><ul><li>APPROVAL AND CHANGES OF THE BUSINESS PLA...
KEY ARTICLES  <ul><li>NON COMPETITION AND CONFLICT OF INTEREST  </li></ul><ul><li>DIVIDEND POLICY </li></ul><ul><li>BORROW...
KEY ARTICLES  <ul><li>RIGHT OF FIRST OFFER  – If the company issues new shares in a future round, the original shareholder...
OTHER  PROVISIONS <ul><li>CONTRACTUAL PENALTY  </li></ul><ul><li>TERMINATION AND EXIT  </li></ul><ul><li>DISPUTE SETTLEMEN...
MAJOR PLAYERS <ul><li>Mark Zuckerberg – FACEBOOK </li></ul><ul><li>Sergey Brin and Larry Page - GOOGLE INC'S  </li></ul><u...
<ul><li>THANK YOU  </li></ul><ul><li>www.businesslaw.mk  </li></ul>
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Legal rules relevant to start-up companies and VC

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Legal rules relevant to start-up companies and VC

  1. 1.   Legal rules relevant to start-up companies and VC
  2. 2. LLC OR PUBLIC LIMITED COMPANY – CORPORATION <ul><li>FOUNDING CAPITAL </li></ul><ul><li>DECISION MAKING AND GOVERNANCE </li></ul><ul><li>REPORTING AND AUDIT </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>
  3. 3. ARTICLES OF ASSOCIATION <ul><li>FOUNDING CAPITAL </li></ul><ul><li>SHAREHOLDERS MEETINGS </li></ul><ul><li>MANAGEMENT - 1 OR 2 TIER SYSTEM </li></ul><ul><li>DECISION MAKING PROCESS – REQUIRED MAJORITY </li></ul><ul><li>DIVIDENDS AND LOSS </li></ul><ul><li>TERMINATION </li></ul><ul><li>LEGAL CONSTRAINS </li></ul><ul><li>PUBLIC </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>
  4. 4. SHAREHOLDERS AGREEMENT <ul><li>PROVIDES FLEXIBILITY </li></ul><ul><li>THE PARTIES CAN REGULATE THEIR RELATIONSHIP IN MORE DETAIL </li></ul><ul><li>SECRET </li></ul><ul><li>NO LEGAL CONSTRAINS </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>
  5. 5. KEY ARTICLES <ul><li>APPOINTMENT AND DISMISSAL OF KEY MANAGERS </li></ul><ul><li>APPROVAL AND CHANGES OF THE BUSINESS PLAN AND BUDGET </li></ul><ul><li>FINANCIAL CONTROL OVER THE COMPANY </li></ul><ul><li>CHANGES IN THE ARTICLES OF ASSOCIATION OF THE COMPANY </li></ul><ul><li>NEW ISSUES OF SHARE CAPITAL </li></ul><ul><li>SIGNIFICANT CHANGES IN THE NATURE OF THE BUSINESS </li></ul><ul><li>MAJOR ACQUISITIONS AND DISPOSALS </li></ul>
  6. 6. KEY ARTICLES <ul><li>NON COMPETITION AND CONFLICT OF INTEREST </li></ul><ul><li>DIVIDEND POLICY </li></ul><ul><li>BORROWING LIMITS </li></ul><ul><li>MATERIAL DEALINGS WITH INTELLECTUAL PROPERTY </li></ul><ul><li>DEALING BETWEEN THE COMPANY AND ITS SHAREHOLDERS </li></ul><ul><li>CHANGES IN THE STRUCTURE OF THE COMPANY (MERGER) </li></ul><ul><li>COMPANY SALE AND LIQUIDATION </li></ul>
  7. 7. KEY ARTICLES <ul><li>RIGHT OF FIRST OFFER – If the company issues new shares in a future round, the original shareholder has the right to buy in pro-rata to maintain their ownership percentage. </li></ul><ul><li>RIGHT OF FIRST REFUSAL if one of the shareholders is trying to sell his shares to someone else, the other shareholders has the first right to buy those shares first. </li></ul><ul><li>DRAG ALONG: This is a right that enables majority shareholder to force minority shareholder to allow the sale of the company. </li></ul><ul><li>TAG ALONG : Other than where a transferor has exercised a drag along right, on any proposed transfer of shares which would result in a sale (consider again the appropriate triggers, e.g., >50% of shares or a transfer by key management of their stake), the other shareholders will have tag along rights to sell all/the same proportion of their interests to the purchaser.  </li></ul>
  8. 8. OTHER PROVISIONS <ul><li>CONTRACTUAL PENALTY </li></ul><ul><li>TERMINATION AND EXIT </li></ul><ul><li>DISPUTE SETTLEMENT AND APPLICABLE LAW </li></ul>
  9. 9. MAJOR PLAYERS <ul><li>Mark Zuckerberg – FACEBOOK </li></ul><ul><li>Sergey Brin and Larry Page - GOOGLE INC'S </li></ul><ul><li>Sulzberger's family - NEW YORK TIMES. </li></ul><ul><li>Eduardo Saverin </li></ul>
  10. 10. <ul><li>THANK YOU </li></ul><ul><li>www.businesslaw.mk </li></ul>

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