So you’ve just come up with a great business concept, given it a test-drive among your family and friends, and now want to go to the next stage. What do you do? You need to put together the ‘playing field’ for your venture. In other words, you need a ‘business structure’.
Well drafted ‘pre-emption’ clauses in a Shareholders Agreement or Constitution provide you with important protections. But there are a number of potential traps that you need to be aware of.
When you first read these clauses it isn’t always clear what they are trying to achieve, and why you would include them in your Shareholders Agreement (or Constitution).
This VideoPost is a 3 part series on the tips and traps of going into business with others.
This VideoPost is a six part series on practical asset protection strategies for entrepreneurs and their businesses.
Have you thought about what would happen to your company if you became incapacitated, or worse, if you died? Who would pay the bills, and enforce the company’s rights?