1. DOCUMENTATION & REGISTRATION
WHAT IS DOCUMENTATION
Something transposed from a thought to a document; the written
account of an idea.
It is usually paper books or computer readable files (such as HTML
pages) that describe the structure and components, or on the other
hand, operation, of a system/product.
Subfield of Documentation include:
Scientific documentation
Technical documentation
Legal documentation
Administrative documentation
Historical documentation
IMPORTANCE OF DOCUMENTATION
Documentation will
Reduce liability,
Mitigate risk from lawsuits and unforeseen events,
Resolve disputes,
Outline the details of wealth distribution
Clearly define the specific roles of the partners, employees,
advisors, Board of Directors and other company stakeholders;
Raise capital; and
Define the business objectives and execution strategy.
Clearly define the specific roles of the partners, employees,
advisors, Board of Directors and other company stakeholders
2. A good but far from comprehensive documentation list...
Standard Operating Procedures
A document that outlines the relevant corporate policies,
decision making procedures, business processes, accountability
controls, etc.
Incorporation Documents
The incorporation documents should also serve to limit liability by
serving as a shield to protect the personal assets of investors,
managers, etc.
Shareholder's Agreement
A shareholder's agreement will help facilitate a smooth transition for
the remaining partners to enable the business to continue as an
ongoing concern.
Intellectual Property Rights Protection Agreements
Trademarks, copyrights and patents fall into this category.
These agreements are intended to provide legal safeguards to protect
the competitive advantage that is gained by the ideas and proprietary
information, processes, products, logos, etc. of the company.
Insurance Agreements
Insurance is intended to mitigate the risk of unforeseen, unfortunate
and potentially catastrophic events that could substantially cripple or
kill the business.
Insurance is also used protect the employees of the business and
their beneficiaries from possible temporary or permanent life-altering
and/or financially paralyzing events, such as catastrophic injury or
disability, substantial property damage or destruction, death, serious
health concerns, etc.
Licensing Agreements
Licensing agreements that are required to operate the business from
local, state, federal and international regulatory authorities.
A lack of compliance by not obtaining the appropriate licenses can
spell disaster and potentially shut down a business and/or cause
substantial liability to be incurred by the partners.
3. Employment Agreements
Defines the working relationship between employee and employer.
In addition, through a non-compete clause, they will typically provide
protection for a number of years to the company from the threat of
employee departure by preventing direct competition by the (former)
employee.
Confidentiality Agreements
Prevent parties from sharing information with outside parties that
could have potentially damaging competitive, financial and/or business
implications (e.g., violation of the confidentiality in a merger
transaction).
Written Contracts
All business arrangements and agreements between parties should be
documented.
Though verbal agreements are enforceable, a written agreement
limits the potential for misunderstanding and can provide protection in
litigious situations.
WHAT IS REGISTRATION
Document detailing the purpose of a proposed public offering of
securities.
The statement outlines
History of the company's operations
Financial details,
Management, and
Facts of importance to potential buyers.
IMPORTANCE OF REGISTRATION
The statement outlines
History of the company's operations
Financial details,
Management, and
Facts of importance to potential buyers