A founder (or co-founders) will be both a director and shareholder of a company. Directors make decisions at board level. Shareholders make decisions at shareholder level either by way of written resolution or general meetings. These decision-making powers are not the same and different legal duties are imposed on directors and shareholders. This important point is often misunderstood by founders or co-founders especially when raising equity and often to their detriment.
In the second “Law for Startups” series with Shainul Kassam, we dived deeper into some of the most important legal topics a founder should know about. We started with how to control your board and shareholder base.
In this session, you will learn:
- The different rules for controlling the board and the shareholder base.
- Why care must be taken when negotiating director roles and shareholder percentages
- What you should take into consideration to prevent loss of control of the board and/or the shareholder base.
Shainul Kassam is a corporate lawyer and founder of boutique law firm Fortune Law specialising in advising entrepreneurs on commercial and corporate law matters. Her expertise covers general start-up advisory, M&A, fundraising, and conflict resolution involving sensitive boardroom issues, international shareholder and partnership disputes. She is committed to advising early-stage and growing businesses both as lawyer and educator. She is an Honorary Practice Fellow of Imperial College, London where she teaches her own course “Law for Entrepreneurs” on Imperial’s Executive MBA.
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