There are many documents an entrepreneur needs on their journey. Prototron’s partner in law, Hedman Partners, has written down the three essential documents that a start-up entrepreneur cannot do without.
Articles of association: public rules of a company
Articles of Association is a public document accessible via the Commercial Register in Estonia. The Articles of Association regulate the company’s purpose and specify the process and the details of the operation of the company.
Moreover, the articles stipulate the bodies of the company, such as the management board, general meeting, and in some cases, the supervisory board, as well as stipulate how meetings should be convened and quorum requirements.
In case of more complex articles set-up, it is advisable to turn to a legal professional when drawing up the articles of association.
Founders’ agreement: regulation for when everything goes well and when it does not
Another document that is a must-have, if you aim to avoid disputes among founders, is a founders’ agreement. A founders’ agreement is a document, which governs the relations among the founders and with regard to the company.
More specifically, the founders’ agreement regulates, among other things, the role and responsibilities of each founder, the main principles for the operation and management of the company, the founders’ obligation not to compete with the company, and not to disclose its business secrets.
Non-disclosure agreement: protect your know-how and sensitive information
A non-disclosure agreement or NDA is a legally binding agreement that two parties conclude if their collaboration includes the disclosure of sensitive information. NDAs can also be concluded in a trial phase when the parties are not sure if their aims and needs overlap to justify establishing more permanent cooperation.
The NDA aims to protect the sensitive information of the parties from being disclosed to third parties.
The NDA will determine what kind of information is considered confidential, in which cases the disclosure thereof is permitted or prohibited, as well as the penalty for disclosure of confidential information.
Want to know more? Read the full article here.
