Category

Cession et transferts clauses in a shareholders' agreement

Selling shares isn't free in a startup with a shareholders' agreement. This category covers the clauses that regulate the transfer of your shares or your investors': pre-emption right (priority to existing shareholders), board approval clause (prior approval by board or general meeting), temporary lock-up (2 to 4 years after the round). The idea: prevent an undesirable new shareholder from coming in without the consent of the others, and preserve the negotiated balance. If you ever want to buy back shares from a departing cofounder, or sell some of your equity to a secondary investor, these clauses set the conditions. Atlas shows you when each clause applies and the usual exceptions.

13 clauses in this category

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