The IoT Show

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Wednesday, July 13, 2005

Team is ready, now get a Shareholder Agreement

We had an amazingly good law firm, Bingham and Dana from Boston with my previous firm Coola. That has set a basic standard for me as to what all a company should have when we get started.

I am also a believer of keeping our books clean and maintaining all neccessary documents and complaince. It will make a big difference for a potential buyer if your exit option is to sell your firm.

I find this article by Mike Volker giving the basics about shreholder agreements, so beautifully that it doesn't make sense me repeating it all over again. I also like the fact that he gives a basic shareholder agreement to use as a basis.

Another resource I like is Busines power law site , though they sell legal documents (I am not affiliated with them nor have I used their services) offer three set of shareholder agreements simple, moderate and complex.

You can use this to get an idea and decide what your team needs and then approach a lawyer instead of gettin educated (and scared) by paying an hourly rate to a lawyer. An estimate I have got for a shareholder agreement is basic one for $250 from amerilawyer and 15 hours at whatever rate from a lawyer.

Hope this helps.

4 comments:

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