Understanding Anti-Dilution Clauses
Dilution occurs when a company issues new shares, reducing the ownership percentage of existing shareholders. This typically happens during fundraising rounds when new investors come on board, or through employee stock options, convertible securities, or mergers. Dilution can significantly impact an existing shareholder’s control over the company and their share of future profits.
Legal Aspects of Dilution – What a Founder Needs to Know
Understanding dilution is crucial for founders, particularly as they seek investment and scale their businesses. When high-growth companies attract investor capital, some level of dilution is expected. So here are five essential points every founder should know about dilution.
Key Provisions of a Shareholders Agreement
A shareholders agreement is a legally binding contract between the shareholders of a company and the company. It outlines the rights, responsibilities, and obligations of the shareholders and governs the relationship between them and the company. The parties to a shareholders agreement are typically the founder shareholders and the company and may also include investor shareholders and key stakeholders such as employees who have equity stakes. A shareholder agreement does not have any prescribed form and as such can be flexibly drafted to meet the needs of the relevant parties.
Negotiating Intellectual Property Licenses with University Technology Transfer Offices
Navigating the landscape of intellectual property (IP) licenses can be complex, particularly when dealing with university technology transfer offices. These offices manage the commercialization of innovations developed within academic institutions. Securing a license from a university technology transfer office requires a strategic approach and a understanding of the process. Here are some key considerations and steps to successfully negotiate an IP license.
Data Protection Officers vs. Representatives: A Comparative Analysis under GDPR, UK GDPR, and the New Swiss Data Protection Act
The roles of Data Protection Officers (DPOs) and representatives stand as critical figures, ensuring businesses navigate the complex seas of compliance. Yet, there often exists a cloud of ambiguity around their distinct functions, responsibilities, and the nuances that set them apart.
Fines and Penalties for Non-Compliance: DSA, GDPR, and CRD
In the digital age, regulations and directives have been established to protect consumers and ensure a level playing field for businesses. Three significant pieces of legislation in this realm are the Digital Services Act (DSA), the General Data Protection Regulation (GDPR), and the Consumer Rights Directive (CRD). This article provides a brief overview of each and outlines the fines and penalties associated with non-compliance.
Understanding Lotteries, Competitions, and Prize Draws in the UK: Legal Framework
In the United Kingdom, promotional activities like lotteries, competitions, and prize draws are common marketing tools used by businesses to attract customers. However, these activities are governed by specific laws and regulations to ensure fairness and transparency. Understanding the differences between these promotions and the relevant legal framework is crucial for business.
SOFTWARE AS A SERVICE (SAAS) VS SOFTWARE LICENSING
Software as a Service (SaaS) agreements and software license agreements are both legal contracts that govern the use of software, but they have distinct differences in terms of their scope, terms, and how software is provided to users. Here are the main differences between these two types of agreements.
E-Commerce Laws in the EU: A Guide for US Companies
The European Union (EU) is a lucrative market for many US-based e-commerce companies. However, selling to consumers in the EU requires compliance with a myriad of regulations and directives. This article highlights the most important e-commerce laws that US companies must be aware of when selling to European consumers.