by John Wires | Jun 10, 2025 | Founder Stories, Incorporating, Intellectual Property, Share Capital, Shareholder Agreements
Usually, the articles of incorporation and company by-laws are not sufficient to protect the interests and expectations of each founding shareholder in a start-up. Even before outside investors come on board, many start-ups enter a shareholder agreement to protect...
by John Wires | Feb 10, 2025 | LawBits, Share Capital, Shareholder Agreements, Venture Capital
After watching an episode or two of the Dragon’s Den or Sharks Tank founders might be tempted to think that negotiating a deal to raise equity capital from investors is simply a matter of valuing shares and dividing up equity. It’s not. The handshake deals made on TV...
by John Wires | Nov 10, 2024 | Incorporating, LawBits, Share Capital, Shareholder Agreements, Stock Options, Venture Capital
Employee stock options (ESOs) are a popular form of compensation among start-ups, particularly in the technology sector. Options grant employees the right, but not the obligation, to purchase company shares at a predetermined price, often vested over a period of 3-4...
by John Wires | Jun 17, 2013 | Incorporating, Share Capital, Shareholder Agreements
Why Have Different Share Classes? Not all shares are created equal. Start-ups can issue different types (or classes) of shares with different rights attached to them. Having different classes of shares can be used for a number of different reasons but more often that...
by John Wires | Jun 17, 2013 | Shareholder Agreements
Lawyers hear the same horror stories all the time. A client starts a company 50/50 with a good friend or business associate and one of two things inevitably happens. The new venture is either successful or within the first few years it struggles to generate revenue...
