the legal implications of external stakeholders tony harper
TRANSCRIPT
The Legal Implications of External Stakeholders
Tony Harper
Who are External Stakeholders in this context?• Grant Providers
• Lenders
• Business Angels
• Venture Capitalists
• Investors in listed companies
• Accessing External Stakeholders
Why do you want additional funding?
• People?
• Equipment?
• R and D?
• To grow?
• To sustain what you already have?
• Be clear with yourself and external stakeholders
Due Diligence
Assets : Owned, leased, borrowed?
Intellectual Property : Owned, licensed, protected?
Customers : Written contracts?
Disputes : Outstanding? Common?
Employees : Notice periods? Restrictive covenants? Confidentiality? Intellectual property?
Insurance : Adequate covers: Norm for your sector
IT : Maintenance Agreements? Disaster recovery plan? Source code? Adequate licenses
Business Plan : Assumptions and sensitivities
The Ongoing Relationship
• Accountability
• Reporting
• Controls and Permission
• Investor involvement:
- representative director?
- customer relationship?
- supplier relationship?
How will the relationship end?
• Eligibility?
• EIS and VCT status
• Further rounds of funding
• Sale or flotation
• Investor’s return
Questions