Contracts To Protect Your Corporation
When people start their business, they are often concerned about start up costs. It is very appropriate to stick to a budget. Corporate contracts are often available at low flat rates. They protect your business and can, at times, keep it from failing. The cost of not having corporate contracts can well exceed the cost of having them drafted. Our corporate lawyers in Calgary, Alberta are happy to work with your budget. Call today. 403-225-8810
How Many Corporate Contacts Are Required
When having contracts drafted, people often want short documents. When confronted with a longer one, they often ask if all the terms are required. When we go through each term, they seldom ask for any of them to be removed. It is similar with corporate contracts. The following are a list of those that every startup company should have. Very few people, once they understand why they are required, decide that they should not have them. That said, we respect people’s choices and are happy to draft as many or as few as desired for your specific startup.
What Corporate Contracts Must Your Startup Have
The following are contracts that each startup business should have in place:
Every corporation requires incorporation documents. While not corporate contracts, they are a must have. Many people get “standardized” incorporation documents. These include bylaws, articles and other starting documents. While standardized or form documents meet the requirements of the law, they often do not meet the needs of a corporations specific needs. Share structures will vary for legal, practical and tax reasons. Various restrictions on the type of business and shares also come into play.
Unanimous Shareholder Agreements
A unanimous shareholder agreement is key to long term functioning and relationships between shareholders. Different shareholders have differing intentions with respect to the company. Many intentions also change over time. Common issues include funding the corporation, the direction of the company, the growth of the company, dealing with debt, the sale of shares, death of shareholders etc.
Employee Stock Option Agreements & Plans
Many companies, even small ones, offer some type of employee stock option agreement or plans. These plans secure employee loyalty and provide for an exit strategy when the founders want to retire or otherwise sell. While these plans do not have to be complicated, they do have to address a number of legal and tax issues. They will also set the rules that are in place for the employees who receive such shares in the company. They help to protect the company in the event that the employee quits or must be fired.
Agreements With Consultants
Any third party that your company engages with should have consulting agreement in place. These corporate contracts set out the terms of service with the consultant. The obvious aspects are included like cost, what work is being done and how you can terminate the contract. Equally as important, these corporate contracts will protect intellectual property, keep information confidential, contract against disclosure of certain information and clear state who owns what (when the contractors work produces data, copy write, etc.)
Contracts With Employees
Each and every company should have corporate contacts with all its employees. And employment contract will set out expectations of both parties. They are often not complicated contracts. Once again, like contractor agreements, they will protect the company from release of certain information and even prevent the employee from competing with the company or soliciting its clients.
A non-disclosure agreement are corporate contracts that creates an obligation to keep confidential company information private. These agreements should be with contractors, employees or anyone whom the company opens up key information to.
Intellectual property is any data, information, processes, trademarks, patents, copy write, procedures, contact lists, suppliers and anything else information wise that has value to the company. Not only does it cost money to produce intellectual property, but often intellectual property has value of its own. Not only does this information need to be protected, but ownership must be clearly assigned to the company. Further, it must be clear that releasing any of this information will result in termination and/or a civil claim for damages.
Corporate Contract Lawyers in Calgary, Alberta
Kahane Law Office in Calgary, Alberta boasts lawyers who draft corporate contracts with real world experience. A number of our lawyers run their own businesses and are dedicated to startup businesses. We understand that finances are often tight to start and offer reasonable flat rate fees for many corporate contracts. Call us today 403-225-8810 (or 1-877-225-8817), or email us directly here.