As a startup founder, there may come a time when you are ready to sell your shares. Before you do so, it is important to understand what restrictions and approvals are needed.
To help you, David Kerr (Senior Lawyer) and Miles Guggenheimer (Lawyer) explore:
+ share vesting and how it affects your ability to sell shares;
+ how co-sale rights affect the sale;
+ the shares class and a purchaser’s request to change class; and
+ valuing the shares and possible tax implications.
About David Kerr
David is a Senior Lawyer with broad experience across all areas of corporate and commercial law. He has assisted many startups with their legal needs, including advising on business contracts, employment/contractor agreements, employee equity plans and capital raising.
About Miles Guggenheimer
Miles is a Lawyer in LegalVision’s Business Sales and Purchases and Corporate Advisory teams. He has assisted Australian businesses with various corporate matters, from local company incorporations to international mergers and acquisitions.
About LegalVision
LegalVision’s unlimited legal services membership provides businesses with a faster, better quality and more cost-effective client experience. LegalVision is a leader in delivering legal services and has assisted more than 150,000 businesses across Australia, New Zealand and the United Kingdom.
Visit legalvision.com.au or call 1300 544 755 to get in touch with our team.
00:00 Introduction
02:05 When Do Founders Sell Shares?
03:01 Can I Sell Shares to a Third Party?
03:35 Share Vesting
04:40 Founder Lock-Ups
05:50 Pre-emptive Rights
06:58 Co-Sale Rights
11:00 Share Valuations
14:06 Tax Implications
20:23 Q&A
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The information provided in this video is for general informational purposes only and does not constitute legal advice. While we aim to provide accurate and up-to-date content, laws and regulations may vary, and the information may not apply to your specific circumstances. We encourage you to contact us for a free consultation so we can provide advice specific to your circumstances.