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Nairaland Forum / Nairaland / General / Business / Business To Business / How To Avoid Being Cheated Out Of Business ByYour Business Partner Or Co-founder (721 Views)
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How To Avoid Being Cheated Out Of Business ByYour Business Partner Or Co-founder by LegalTosin(f): 1:09pm On Jul 29, 2019 |
This mistake I will be talking about in this article cost Eduardo Saverin, Facebook co-founder a whooping 30% equity stake in Facebook Inc. You certainly don’t want to be cut in that web. You definitely don’t want to be booted out of a company you’ve worked hard and laboured to build. Right? Starting a business is exciting and its commonplace not to talk about all the legal stuff , afterall you don’t plan to run into trouble . This common mistake is neglecting to discuss and agree on certain important legal issues at the point of starting a business. But newsflash, if you fail to talk about these issues, I can assure you sooner or later they will popup and that may be the beginning of the end of your company. It is important that co-founders agree on certain important issues and have it documented in a legally- binding co-founder’s agreement. Would you like to know? |
Re: How To Avoid Being Cheated Out Of Business ByYour Business Partner Or Co-founder by LegalTosin(f): 1:14pm On Jul 29, 2019 |
But you say, our company has a memorandum and articles of association, Yes, I know, but as you will soon discover, it isn’t sufficient. What is a co-founder’s agreement and what does it contain? Why is it so important? You will discover in this article, many issues you and your co-founders have not addressed nor agreed upon and see how that can mar your investment. A co-founder agreement contains among other things what the co-founders of a company have agreed upon with regards to the following; roles and responsibilities of each founder, equity ownership and vesting , remuneration, confidentiality, the goals, vision of the company, appointment of employees, signatory rights, mergers and acquisition, exit strategy, issuing new share , percentage of ownership, type of shares, how board members will be appointed, merger, signatory rights, quorums and resolutions, conflict of interest among many other things. |
Re: How To Avoid Being Cheated Out Of Business ByYour Business Partner Or Co-founder by LegalTosin(f): 1:15pm On Jul 29, 2019 |
Would you like to know more? Check https://charislegalpractice.com.ng/avoid-this-legal-mistake-most-co-founders-of-companies-make/ for the full article. |
Re: How To Avoid Being Cheated Out Of Business ByYour Business Partner Or Co-founder by Skyfornia(m): 1:20pm On Jul 29, 2019 |
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