27 November 2018
Convertible loan notes – top tips for founders of startups
Convertible loan notes are a great way for start ups to generate an initial chunk of cash in order to advance certain aspects of their business, at the same time as they try to secure a direct equity investment. As a result, convertible loan notes can act as a short term solution to financing needs and, once in place, can be an indication to future investors as to the potential of the business.
20 November 2018
Website development agreements – consider the content of your contract as well as the content on your site
A strong online presence is often a crucial component of a business’ marketing strategy. If your business doesn’t have sufficient resources to develop its website in-house, it will need to engage a website developer. It is imperative to enter into a carefully drafted legally binding contract with your website developer from the outset of the project in order to protect your business interests and minimise the risk of any future disputes.
9 November 2018
Falling Foul of False Filings
Company directors have a legal duty under the Companies Act 2006 (“the Act”) not to file false information on Companies House. Knowingly or recklessly delivering information or making a statement to the Registrar of Companies that is misleading, false or deceptive is a criminal offence under s.1112 of the Act and can lead to imprisonment and/or a fine.
28 June 2018
FCA Dear CEO letter on cryptoassets – a warning to firms
On 11 June, the UK Financial Conduct Authority (FCA) issued a “Dear CEO” letter on how banks should deal with the financial crime risks associated with “cryptoassets”. The FCA defines cryptoassets as publicly available mediums of exchange that feature a distributed ledger and decentralised system for exchanging value, such as Bitcoin and Ether. These assets are more commonly known as cryptocurrencies.
21 June 2018
Is a shareholder agreement important for my new startup?
You have successfully incorporated your new startup company and are all set to grow your business. What is one of the first things you should do? Without a doubt, if you have two or more shareholders, you should consider a shareholders’ agreement. It is easy to postpone putting a shareholders’ agreement (aka founders’ agreement) in place, but it is important. Why? Because it can regulate how changes in the company in the future will be dealt with including how decisions will be made, what would happen if a shareholder wanted to leave or became ill and, most importantly, what would happen if the shareholders had a disagreement.