How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JGM Your Own Question
JGM, Solicitor
Category: UK Law
Satisfied Customers: 11546
Experience:  30 years as a practising solicitor.
Type Your UK Law Question Here...
JGM is online now
A new question is answered every 9 seconds

Contract law between two foundersof a company, we want to

Customer Question

contract law between two foundersof a company, we want to include vesting in this contract, the equity split and also further equity split should we recive further investment. Please check (1) if it is legally binding once signed, (2) if it is all legally correct with no incorrect terms. (3) anything that can be worded better or restructred
Submitted: 1 year ago.
Category: UK Law
Expert:  JGM replied 1 year ago.

You would normally call this a Shareholders Agreement? It covers the points you raise. Is it intended that the shares given to family are to be voting shares with full rights or does the voting remain with the two of you? Other than that it seems straightforward and reasonably well drafted. The language is less formal than a lawyer would use but if anything that is to commended. Happy to discuss any specific points further. In the meantime I hope that helps. Please leave a positive rating so that I am credited for my time.

Customer: replied 1 year ago.
the points covered are first off all vesting of the locked shares, then it is equity split amongst A and B and there family. Finally it states how we will equity split in the future.If a lawyer drafts it with better language do you offer this service to do this?
Expert:  JGM replied 1 year ago.

I don't think you need it substantially redrafted. If you did you would have to see your own lawyer. We can't offer that service on this site which is really just a question and answer service.

Customer: replied 1 year ago.
ok, so if there was ever a dispute this contract is clear and concise enough to be shown in a court of law as evidence and be legally binding once both co founders sign it?
Expert:  JGM replied 1 year ago.

yes, in my opinion.

Customer: replied 1 year ago.
ok, what make a contract unlawful? furthermore are you a lawyer based in the UK?
Expert:  JGM replied 1 year ago.

Yes I am a solicitor in the UK. There are many things that could make a contract unlawful. What is your specific concern?

Customer: replied 1 year ago.
apologies for such a vague question!i mean in this contract i have now, if me and my co founder sign it there is nothing making it void? that is what i mean.Furthermore the vesting section about share being locked also is legally binding once we sign it there is no mistakes in that sectionregards
Expert:  JGM replied 1 year ago.

Yes it looks fine.