Investment and Shareholders Agreement: start-up business single investor

£75.00 exc VAT

This document is for the investment by a single investor in a start-up private limited company.  It covers both the investment terms and acts as the shareholders agreement between the investor and the founders of the company going forward.

 

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Investment and Shareholders Agreement: start-up business single investor

A combined investment and shareholders agreement for the investment in a start-up business by a single investor.

Background

When use a combined investment and shareholders agreement?

A combined investment and shareholders agreement is likely to be suitable:

  • for the first investment in a company by an investor
  • where the company does not anticipate future investment rounds involving additional investors

About this Investment and Shareholders Agreement

This document is for the investment by a single investor in a start-up private limited company.  It covers both the investment terms and acts as the shareholders agreement between the investor and the founders of the company going forward.

Document features:

  • subscription: the mechanism and terms for the subscription for shares by the investor
  • completion: completion of the investment, including the issue of shares to the investor and payment by the investor
  • warranties: warranties from the company and each founder.  As the investment is in a start-up company, the warranties reflect the limited trading history of the company
  • limitations on liability: legal limitations on the potential liability under the warranties of the company and the founders
  • investor director: the investor’s right to appoint a director
  • board proceedings: how proceedings of the board will be conducted
  • future share issues: pre-emption rights on the issue of new shares
  • share transfers: process for the transfer of shares, including:
    • pre-emption rights on share transfers
    • compulsory transfer events, including if a founder ceases to be employed by the company whether as a good or a bad leaver
    • tag-along and drag-along rights
  • reserved matters: a list of matters requiring the prior approval of the investor
  • information rights: rights of the investor to information about the company and its finances
  • restrictive covenants: restrictions on the founders in terms of competing with the company and soliciting customers, suppliers and employees of the company

Explanatory guidance

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

Investment and Shareholders Agreement: start-up business single investor

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