Questions regarding units of ownership in a corporation, mutual fund, or other organization.

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How should I reward volunteers in a UK Limited Company?

I'm setting up a UK limited company to run a large music ensemble, and people will pay a subscription to take part, but I won't be able to afford to pay most positions (managing concerts, publicity, ...
2
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2answers
88 views

New shareholder class for special dividend?

This is more so theory than plans, and this is the only stack exchange that talks about corporate structure Is it possible to make a new shareholder class, arbitrarily, solely for the distribution of ...
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0answers
23 views

Where can I get a template legal document confirming my share in a startup? [closed]

I agreed to do some minor work to a newborn startup for percentage of shares, not cash as they do not have it (yet). Where can I get a template of legal document (for the UK) which says that I do the ...
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0answers
39 views

How does reverse-vesting work?

How does reverse-vesting work? I understand the company has the right to "buy back" shares if the employee leaves early, but how exactly does that work? What price do they pay per share?
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2answers
409 views

Gross profit royalties vs non-voting equity

I began work with a small startup last year, working as a consultant. Consulting didn't last long because I saw great potential in the company and made it clear I wanted to be a part of it. I ended ...
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1answer
66 views

equity max of 23% split among “development” — a ripoff?

I've been working on a project with three other people: one is a developer, one is a manager type, and one is a sales type. I'm a developer. The two developers were invited into the project by the ...
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1answer
84 views

Equity in a business driven by software?

I am completely new to negotiating equity, and I don't know where I stand with regards to pushing back on potential offers of equity based on a new project. If anybody could give me their view on my ...
4
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2answers
77 views

Payment methods and conditions for fresh startup

I am an Interface designer and a startup asked me to work with them. As of now they are only two people and do not have a budget, so they would offer a share in the company. I would be fine in ...
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0answers
34 views

Setting a stock vesting schedule retroactively

So here's the the quick summary: Three co-founders with shares equally divided. Started working on it about a year ago, got incorporated about 4 months ago. Now one of the co-founders wants to leave. ...
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1answer
55 views

Issues around accepting salary plus stock options in job offer

I've been offered a job within a new SaaS startup. I'd be the first technical hire. They've offered to match my current salary and give me 2.5% stock options. Or I take a couple of £K extra with no ...
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1answer
75 views

Equity split 50/50 and past contributions

I've checked other questions but none cover the topic of past contributions. I'm wondering how much weight does time spent before incorporating matter. Do Founder A earlier contributions have enough ...
5
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5answers
331 views

Partner leaving at an idea-stage start up

This question might sound dumb, but I'm at a complete loss of what to do. My friend and I discussed starting a web site business years ago. For about a year and a half, we met every other weekend ...
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0answers
44 views

Angel or VC wants to invest, what are main arguments to negotiate shares vs investment?

what are main arguments to negotiate shares vs investment? I want to be prepared when the time comes and I don't want to figure out in the moment about the negotiation about shares split and how much ...
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0answers
37 views

Where to find enthusiasts to collaborate on startup development? [closed]

We're the team of 4 guys from Europe. Recently launched a startup and are on the way of development, but want to improve the speed of building up a successful startup. Hence, we're looking for ...
3
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2answers
78 views

Legal Status of USA/UK Start up forming

I and a partner wish to set up a company. One of us lives in the UK and the other in the USA. We both want to make sure we are one legal entity so we can sell shares, or if the start-up was bought ...
2
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1answer
77 views

Share ownership in software spinoff

I have been employed at a research consulting company for several years. During the course of running research projects, I have developed software that I use internally to run some of my projects. ...
0
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1answer
48 views

reasons for a publicly trades company to go private? [closed]

I am reading the news that Dell will attempt to go private in a multi-billion share buyout, and it states that: [Michael Dell] will attempt a revival of his struggling computer company without ...
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2answers
44 views

Cofounders allocation of shares upon death

We are two cofounders with unequal shares in our startup (70/30). If something happened to one of us (death), how are the shares handled in a will? Does the surviving cofounder have to pay current ...
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3answers
76 views

Issuing shares to advisor and dealing with fractional shares

We just incorporated and are now bringing on board an advisor. We want to give him %1. Our company consists of me and two co-founders, each with 1 million shares. Our total authorized shares are 5 ...
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1answer
48 views

Repercussions maintaining ownership to a company I am not actively contributing to

I am a co-founder of an LLC and because of some very heavy issues that has come about, I haven't been an active team member. The business has been around for a few years and, like everyone else who ...
3
votes
3answers
196 views

Do I have to sell my shares to my cofounder?

Our company ran low on funds about 4 months ago. We decided it would be best If I took on an advisory role and went to work elsewhere to cover my personal expenses. I have vested shares in a large ...
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4answers
325 views

Help me understand issuing shares

If a company issues more shares does that reduce the value of the shares already issued? Logically it should. For example if I gave 10% to someone for some work then later double the number of ...
5
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5answers
216 views

How does one go about finding shared office space, specifically in the UK?

I'm currently working from home, but finding this too solitary, and also need a change of environment in general so I'm considering moving cities. I think this is a great time to branch out of my ...
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1answer
168 views

developer (almost co-founder?) getting 5% share

I'm in a same situtation, maybe worse as this guy: Developer, offered share in small startup company in return for large rate reduction - advice needed Two friends had an idea, they were kinda ...
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4answers
1k views

Developer, offered share in small startup company in return for large rate reduction - advice needed

I currently work freelance as the sole software engineer for a small but promising startup company. I've been working with them for a several months, converting their "demo ware" software into ...
0
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1answer
69 views

From freelance to CTO: conditions

I am currently working as a Freelance mobile programmer for a start-up since the project started, but I have always given my opinion and advise about business development (for free), and it came to a ...
0
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1answer
116 views

Software Startup 9 Months Of Development [duplicate]

Possible Duplicate: What would be a fair equity distribution between me and my co-founder? I started developing a software product 9 months ago which is now ready to launch. My buddy has ...
3
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0answers
117 views

Equity for First paid Tech-employee in a not-profitable financed Startup

I'm trying to be as specific as possible here: We are a Startup 5 months on the go with three co-founders. Since none of us can truly code we need to employ our first Web-developer and we have found ...
4
votes
3answers
187 views

What disadvantages are there if I have 45% of the share?

A close friend of mine wants to start an Internet business and he offered me to be his partner. I will be responsible of building the website and deal with technical issues. He will be responsible of ...
6
votes
5answers
455 views

How much equity should I get for developing a site where the idea isnt mine

A few months ago, I was asked to join a startup for $85k/year. All the company really had was a pretty big angel investor and one guy with the idea (wealthy father and son with the idea). Before ...
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2answers
110 views

Minimum Cost of Par Value for 10 million Common Shares (Delaware)

It is my understanding that many tech startups form their C Corp in Delaware and issue 10 million common shares for various reasons. My question has to do with Par Value per share. Most startups ...
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0answers
29 views

partnership models [closed]

I am trying to form a LLC with a Non resident. He has a company overseas running for 10 years. Both of us have a technical background. My responsibility is to form LLC,open bank a/c coordinate with ...
0
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0answers
26 views

How many percentage of shares ownership/equity for a CTO + co founder in startup software company if I'm not a software guy but do have the idea? [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? If I don't have skill to anything related to make a software (UML design,code,program,etc), but I do ...
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0answers
18 views

How to split share at moonlighting stage? [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? I have a business idea. I have talked to two other people about this and they are interested. We are ...
0
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1answer
44 views

Does having stock grant equal shareholder

Legally speaking, if a person has been issued a stock grant does it automatically make that person a shareholder? Or does he need to be given a stock certificate? What about options?
1
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1answer
93 views

Is it unattractive to investors if I have a 51% Anti-Dilution Provision?

Will investors be turned off if i own 51% of the company and have an Anti-Dilution clause that keeps me at 51%? I expect I will go through several rounds of 3rd party investing in my start-up.
1
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0answers
17 views

How to divide equity between founders in university spin-off? [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? The history of the project: The project started four years ago based on the works and idea of one of ...
6
votes
3answers
4k views

How do you actually setup a vesting agreement for co-founders w/out breaking the budget?

I'm based in Hong Kong. I've read through a lot of information about share vesting for co-founders and realized that is definitely the solution I want. I'm now trying to figure out how to actually go ...
3
votes
1answer
161 views

How to structure even number of board of directors?

We are in the process of setting up a board structure for our startup. Everybody on the board will have their own veto rights on important matters, such as capital injection, spending limits, getting ...
1
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1answer
108 views

Partnership disagreement

My business partner and I have formed a partnership, we are in the process of drafting our partnership agreement. One of the points that he wants on there is: If one of the partners leaves they ...
0
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1answer
188 views

Where to put vesting schedule for founders?

For a new corporation, should the vesting schedule and related conditions be written in the Articles of Incorporation, Shareholders Agreement or as a separate document? Thanks for any advice.
1
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1answer
59 views

Tricky Stock Creation Scenario

My partners and I own a couple business'. They are both LLC's. We want to start a third as a shell corporation which will own the other two by way of shares not the LLC partner names on everything ...
0
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0answers
37 views

Shares to programmers [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? So I friend of mine has this idea for a kind of social network based on video blogging, for obvious ...
2
votes
2answers
140 views

Can a firm buy itself?

Suppose you got scammed by an incubator, who is however apparently willing to sell his shares (which are now worth a couple times more than the initial injection (which effectively did nothing)) ...
0
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2answers
223 views

Clawback vs. vesting

What is the difference between clawback and founder vesting? It seems that the term "clawback" was used in connection with the Zynga and Skype cases Equity Clawback - how to avoid Zynga situation
2
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2answers
501 views

Under what conditions can a C corp authorize new shares?

Under what conditions can a C corp increase the total number of shares authorized? Board approval? Majority shareholder approval? Unanimous shareholder approval?
0
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0answers
26 views

Share structure changes

Two friends of mine and I started a website development company (Australian Pty Ltd). Everything is going fine, we've got a few clients and a little money in the account. After 4 months, one of three ...
1
vote
4answers
302 views

Advice on percentage to bring designer to startup

I'm working on a startup based on my partner's idea. It's a social website. My partner is not not a technical guy but the one with the original idea, he had previous experience with a successful ...
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2answers
138 views

How many shares in my case?

I recently joined a small company who has been established for a year and doing outsourcing. It doesn't have tech employees and what they do is to take customer request and find outsourcing companies ...
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2answers
316 views

Am I a cofounder and how many equity shares should I take?

An engineer creates a product with most fundamental functions and is almost ready to establish a new company. He wants me to be in charge of the marketing for the new company/product. For now, only he ...

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