Registering or incorporating your company is a key step in a startup's life but it is just a small and relatively simple step in the process of establishing a private limited company. The process is straightforward and can be done online at Companies House. However, it is not a step that you should rush [...]
By default, companies registered at Companies House are governed by the Model Articles, a generic Articles of Association, which prescribe how the company, a distinct legal entity under UK law, and associated directors and shareholders interact to manage the governance of the company. The Articles describe: Limitation of liability Directors' power and responsibilities, Decision [...]
The US legal firm Wilson Sonsini has provided the following guide to navigating down-round financing which can be expected in the current Covid-19 environment. The legal specifics refer to the US market but this can be a useful guide to the issues to be addressed.
The UK government announces additional support for startups in a new coronavirus Future Fund to be launched in May. The government is committing £250m towards a new £500m fund that would invest in high-growth private companies. The government also promised £750m worth of grants and loans to small and medium-sized businesses focusing on research and [...]
Today Spotify (SPOT) delivers a direct listing on the NYSE by closing trading at $150 per share, above its reference price of $132. A direct listing is highly unusual process that does not involve the normal process of using one or more brokers to run and underwrite the IPO. The shares offered of sale [...]
It is clear that Brexit is not a positive for UK business in general and more specifically definitely not good for early and growth stage companies in the innovation economy. Core to efficient running of the technology economy is early and growth stage funding, an area where the UK has developed a rich ecosystem [...]
This post provides direction on managing company boards and should be see in the content of other posts on governance and company law. Firstly a quick summary of the key points: The board of directors is the group of individuals charged with governing the company in the interests of the shareholders, Board members have [...]
This and related posts cover key board management issues often experienced by early stage and rapidly growing companies. The views expressed are based on the hands-on experience of over 500 board meeting across more than 25 individual companies at all stages from creation to exit. In law, the group of individuals elected to the [...]
EIS is a tax efficient scheme operated by HMRC to encourage support for early stage companies. The details of the scheme are given here: Enterprise Investment Scheme EIS/SEIS advance assurance application form The scheme has both initial an ongoing requirements and the company is limited to a total of £5 million from venture capital [...]
The following info graphic provided by Kuber Ventures gives additional information on the benefits of each scheme. Investors tend to focus on the immediate tax reliefs but the lifetime value is in the elimination of capital gains tax on profits and loss relief which can be taken against income. Taken together, these are a compelling [...]
