Startup Shareholders Agreement Template for Austria

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Key Requirements PROMPT example:

Startup Shareholders Agreement

"I need a Startup Shareholders Agreement under Austrian law for my Vienna-based AI software company, which will be receiving its first round of venture capital investment in March 2025; the agreement needs to include specific provisions for employee share options and intellectual property protection."

Document background
The Startup Shareholders Agreement is a foundational document for Austrian startup companies, typically implemented during company formation or significant investment rounds. It becomes particularly crucial when transitioning from a founder-only structure to include external investors or when establishing formal governance mechanisms. This agreement, governed by Austrian law and complying with the GmbH-Gesetz, establishes the framework for shareholder relationships, corporate governance, and business operations. It includes essential provisions for share transfers, voting rights, profit distribution, and exit strategies, while incorporating specific Austrian legal requirements and market practices. The document serves as a crucial tool for risk management and dispute prevention, ensuring clear understanding among all shareholders regarding their rights, obligations, and the company's operational framework.
Suggested Sections

1. Parties: Identification of all shareholders and the company

2. Background: Context of the agreement, including company formation and purpose

3. Definitions and Interpretation: Key terms used throughout the agreement and interpretation rules

4. Share Capital and Shareholdings: Details of share capital structure and current shareholdings

5. Shareholders' Commitments and Contributions: Initial and future capital contributions, investment commitments

6. Management and Corporate Governance: Board structure, appointment rights, decision-making processes

7. Shareholders' Meetings: Procedures for convening and conducting shareholders' meetings

8. Reserved Matters: Decisions requiring special majority or unanimous approval

9. Share Transfer Restrictions: Limitations on share transfers and related procedures

10. Pre-emption Rights: Existing shareholders' rights to purchase shares before third parties

11. Tag-Along and Drag-Along Rights: Rights for minority protection and majority exit facilitation

12. Anti-Dilution Protection: Provisions protecting against share value dilution

13. Information Rights: Shareholders' rights to company information and reporting obligations

14. Non-Competition and Confidentiality: Restrictions on competitive activities and information sharing

15. Term and Termination: Duration of agreement and termination circumstances

16. Dispute Resolution: Procedures for resolving conflicts between shareholders

17. General Provisions: Miscellaneous legal provisions including governing law and notices

Optional Sections

1. Founder Vesting: Vesting schedule for founder shares, used when founders need incentivization to remain with company

2. Employee Share Ownership Plan (ESOP): Framework for employee share participation, included when company plans to offer shares to employees

3. Intellectual Property Rights: Specific IP provisions, needed when company has significant IP assets

4. Investment Milestones: Staged investment provisions, used for planned future investment rounds

5. Put and Call Options: Specific share purchase rights, included for particular exit scenarios

6. Dead Lock Resolution: Special procedures for resolving management deadlocks, useful for 50/50 ownership structures

7. Preferred Shareholder Rights: Special rights for preferred shareholders, needed when there are different share classes

8. Digital Rights and Data Protection: Specific provisions for tech startups handling significant data

9. International Operations: Additional provisions for startups operating across multiple jurisdictions

Suggested Schedules

1. Schedule 1: Details of the Company: Company registration details, address, and corporate structure

2. Schedule 2: Current Shareholdings: Detailed breakdown of share ownership and share classes

3. Schedule 3: Business Plan: Current business plan and financial projections

4. Schedule 4: Reserved Matters List: Comprehensive list of decisions requiring special approval

5. Schedule 5: Share Valuation Methodology: Agreed methods for valuing shares in various scenarios

6. Schedule 6: Deed of Adherence: Template for new shareholders joining the agreement

7. Schedule 7: Initial Board Composition: Details of initial board members and their roles

8. Schedule 8: Competing Businesses: List of identified competing businesses for non-compete provisions

9. Schedule 9: IP Assets Register: Detailed list of company's intellectual property assets

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Technology and Software

Biotechnology

Financial Technology

E-commerce

Digital Media

Clean Technology

Healthcare Innovation

Industrial Technology

Consumer Products

Professional Services

Manufacturing

Artificial Intelligence

Blockchain

Internet of Things

Sustainable Energy

Relevant Teams

Legal

Finance

Corporate Development

Executive Leadership

Board of Directors

Investment

Compliance

Corporate Governance

Business Development

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Managing Director

Startup Founder

Corporate Lawyer

Investment Manager

Venture Capital Partner

Board Member

Company Secretary

Legal Counsel

Corporate Development Director

Business Development Manager

Compliance Officer

Investment Analyst

General Counsel

Startup Advisor

Financial Controller

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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