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We've covered dilation and the Board of Directors(BOD). Now, let's delve into Tag-Along Rights—An Essential Topic Imagine your startup takes off! A major player wants to buy the company, and your majority shareholder is ready to cash in. But what ab

Tag Along v/s Drag Along Rights When drafting agreements, Tag Along and Drag Along Rights are essential clauses that shape how investors and founders navigate ownership changes. Let's break down the impact from both perspectives: For Investors: 1.

As a founder, your startup is your baby. But what about when that Golden Exit opportunity appears? Drag-Along Rights in your Shareholder Agreement(SHA) are crucial for ensuring a smooth acquisition process. What are Drag-Along Rights? They empower

Shareholder Agreements: The Bedrock of Your Business A well-crafted shareholder agreement is crucial for a company's success. As a corporate lawyer with years of experience, I've seen firsthand the impact these agreements can have. Key clauses to c

Transfer Rights Clauses in SHAs from an Investor’s Perspective!! When investing in startups, a well-drafted Shareholders Agreement (SHA) isn’t just a formality, it’s the foundation that protects their financial interests and ensures strategic contro

Understanding Shareholder Agreements (SHAs) in M&A Did you know that the terms of your Shareholder Agreement (SHA) depend on the level of your stake acquisition in a company (SPA)? Here's a general overview of how SHAs differ based on acquisition ty

Startup Founders: Is Your Shareholder Agreement Protecting Your Vision? Let's talk about a critical component that often gets overlooked: the Voting Rights Clause. As a founder, you've poured your heart and soul into your startup. But have you con

Demystifying the Ownership Structure Clause in Shareholder Agreements (SHA)📍 The Ownership Structure clause in your SHA is crucial. Here's why: 1. Defines Equity Distribution: It outlines who owns what percentage of the company. This impacts deci

𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬, 𝐒𝐡𝐚𝐫𝐞 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐩𝐭𝐢𝐨𝐧 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬, & 𝐒𝐡𝐚𝐫𝐞 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬: 𝐍𝐨𝐭 𝐀𝐥𝐥 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬 𝐀𝐫𝐞 𝐂𝐫𝐞𝐚𝐭𝐞𝐝 𝐄𝐪𝐮𝐚𝐥! When expanding your busin

A Term Sheet for company Pre-Seed/Seed/A/B defines: 1) Company 2) Founders 3) Investors 4) Structure of financing 5) Liquidation preference 6) Anti-Dilution 7) Advisory board 8) Material Decisions 9) Pro-rata Right 10) Right to First Refusal 11) Dra