When Corporate Governance Fails Humans have organized the world through an infinite string of agreements and social contracts. Whether people agree to stop at a red light or get in line at the grocery store, a functioning society depends on these kinds of agreements. Managing organizations like nonprofits and corporations require layers of agreements between […]
Maintaining a clean, paper trail of securities transactions is a prevailing issue for many companies. At the nexus of this is SEC Rule 144, which stipulates that certain conditions must be met in order for the sale of securities to take place. The effective tracking of securities is vital for private companies seeking to enter […]
What Is an Option Pool? An option pool consists of shares of stock reserved for employees of a private company. The option pool is a way of attracting talented employees to a startup company - if the employees help the company do well enough to go public, they will be compensated with stock. Employees who get into the […]
A corporate entity is a business structure formed specifically to perform activities, such as running an enterprise or holding assets. Although it may be comprised of individual directors, officers, and shareholders, a corporation is a legal entity in and of itself. Generally speaking, there are three general forms of legal entities through which business can be conducted: […]
A “Cap Table” (short for “Capitalization Table) is a document, typically in the form of a spreadsheet or table, that offers a snapshot of a company’s equity capitalization and total market value. While commonly used by startups and early-stage businesses, cap tables have utility for all types of companies. In the case of a new […]
Corporate bylaws are a vital element of a newly formed company, providing key rules and regulations for operational effectiveness. They aredrawn up and codified by the board of directors when a corporation is being formed. This document helps to ensure that a business runs consistently from its inception. Bylaws thus become the critical document to […]
Articles of Incorporation provide the basic legal framework by which a company operates in a particular state or jurisdiction. Considered a public record, it codifies key business activities, owner names, and stock information for the company. For an LLC, this document is referred to as an “operating agreement.”It describes the operational activities for the company […]
Starting a business is an exciting endeavor. The possibilities for success are unlimited. But the road to success is not easy. It requires long hours, dogged persistence, and the expenditure of funds. With the takeoff of your entrepreneurial venture, you may have noticed the impact it’s having on your time and finances. This requires your […]
Consciously or unconsciously, there are three desires every business owner strives for: They are time, money and significance. Sadly, however, most find themselves at the whim of a never-ending flow of demands on the entrepreneurial journey. As a result, their businesses often never reach a place where they can untether themselves to enjoy the fruits […]
