A critical mistake often made by startups is the use of a shareholders` agreement found online or the creation of an own by the combination of two or more web templates. While search engines have revolutionized our access to information, we should not rely on them to serve as business advisors and lawyers. The transformation of an excellent idea into a functional and flourishing company, able to adapt smoothly to the constantly changing market conditions and consumer requirements, depends largely on the creation of a stable business base. In the early days, a startup faces several obstacles that, if not properly managed, can shut down the business itself. Strategic planning, implementing sound business practices and putting in place tailored safeguards are cornerstones for building a successful and sustainable business. That`s why the founders of these “big ideas” should be carefully and actively involved in setting up their company`s framework. If entrepreneurs say they don`t need a shareholders` agreement because they won`t have problems, they should think about “what if” situations. These are often circumstances that are not taken into account or thought of at the beginning of a business. Some of them would be so? Questions could be: a shareholders` agreement can restrict an outgoing shareholder`s ability to create a competing business, which would be invaluable in protecting your startup`s interests and is the key to preserving the company`s value.

It is a legally binding document that defines the structure of the company. A shareholders` agreement can exist among many people, not only with the co-founders, but also with anyone who has a potential interest in the company. Ignoring the need for a shareholders` agreement carries a greater risk, given that, as with any business, problems can arise and it is important to have a game plan before these situations in order to serve as an effective referral mechanism, which is what should be done in these circumstances. In addition, a shareholders` agreement serves as a protection and buffer between partners/co-founders in case of problematic circumstances, and it is considered more effective, because co-founders spend less time debating, arguing and prosecuting in difficult situations, because they have the agreement they can use. A shareholders` agreement should essentially be the cornerstone of any business project between founders and partners. One of the most remarkable features of the startup community is the resilient and positive outlook that these emerging companies possess. It is this positive energy that drives innovation and attracts both investors and end consumers. However, the Achilles heel of this positivity is that one often avoids planning for the worst. If you can`t establish a game plan, emerging issues can destabilize a startup. Agree that the shareholders` agreement is probably one of the most complex.

At first it`s hard for our team, but later it works well. During the Seed phase, the shareholders` agreement will be used to mainly settle fundamental issues relating to the relationship between the founders, starting with their equity participations, contributions, commitments and roles, commitment to the company, investment rules, etc. A partner`s contract is a legal contract concluded by all the shareholders of the company. It regulates how shareholder transactions are conducted and can help protect the startup from unforeseen shareholder issues that can hurt the success and thus the value of the company. A shareholders` agreement does not need to be submitted to companies House, so the terms of the agreement remain confidential. . . .