The Tag Along Right, as other clauses and agreements we have previously reviewed in this blog, has the purpose to regulate the withdraw of the partners from the Company. This right is established particularly with the aim to grant protection to minority partners and/or shareholders.
When setting up for a new venture it becomes necessary to take some safeguard measures, be them between Founders or between these and workers. In previous posts we reviewed some of these contractual arrangements, such as the Non-Disclosure or Non-Compete Agreements. These contracts are intended to protect a Company’s intangible asset: Information. These assets may… Read More Vesting Clause Application
After the formation of a company, by means of the Electronic Company Registry or the old system, before the Commerce Registry, it becomes necessary an array of operations and proceedings that will ensure the company’s regular development.
With the entering into force of Law 20.659 that creates the Electronic Company Registry, now two different systems coexist by both of which a company could be constituted.
Negotiation over founder equity can be a particularly challenging task. But it’s one of the key decisions that a founding team must take beforehand in order to avoid future disputes and disagreements, broken relationships and the company’s paralysis. So, once you’re all set, it’s time to sit down with your co-founder or employee for the… Read More Dealing with Equity Splitting
The electronic signature is a tool that allows the receiver of a document to identify and verify its author and that has the same legal value and generates the same effects of a hand written signature. Its use and diffusion are given by the possibility of cutting down costs and time that usually come with… Read More The Electronic Signature
Having passed already 3 years since the Law’s entry into force, we seek to present some of the shortfalls and disadvantages detected in our practice, that are generated by the use of the mentioned Registry. A setback that occurs in certain proceedings, like in the statute reforms of a joint-stock company, where the system requires… Read More Shortfalls of the System “Your Company in 1 Day” (Part 2)
A laudable initiative of Sebastián Piñera’s Government created the Electronic Registry of Companies under the control of the Ministry of Economy with the purpose of “Simplifying the Regime of Constitution, Modification and Dissolution of Mercantile Companies”. As a matter of fact this is the name of the Law (20.659) that creates the mentioned registry, most… Read More Shortfalls of the System “Your Company in 1 Day” (Part 1)
Probably sooner than later every company in Chile must interact with it’s Tax Authority, the Internal Revenue Service (Servicio de Impuestos Internos or SII), so is a good thing to revise some rules related to the appointment of a representative to act on behalf of the company. Whether is the company manager or some other… Read More Representatives before Chilean Internal Revenue Service
Probably a lot of entrepreneurs developing their startups in Chile have heard of this type of Company. Is also probable that these entrepreneurs have been told that this is the most suitable type of company if you are thinking to incorporate your Startup. But what are really the advantages of the SpA over other kind… Read More Why is SpA (Sociedad por Acciones) the best “Suit” for your Startup?