The Spin-Out Framework

A Successful Spin-out Requires

• Time
  Which you may prefer to spend on research.
  
  
• Skills and Resources
  Which are not generally available in universities.
  
  
• Mundane Work
  Which you may prefer not to do (printing, stationery, premises, insurance, many meetings, etc).
  
  
• A Measure of Luck

Company Law

• Limited Liability
  Protects owners from creditors.
  
  
• Directors' Responsibility
  Protects creditors from owners.
  
  • A limited company must have directors.
  • A director must not continue trading when the company is insolvent.
  • Directors must keep accounts which reflect accurately the company's financial condition.
  • Directors are like trustees of the company, and must not benefit personally at the company's expense.

Directors are personally liable for the activities of the Spin-out.

This Is What You Do

1. Decide what the company is to do
   
   • what is it going to sell?
   • where is it going to sell it?
   • who is going to sell it and how?
   
   
2. Decide on who is going to own it
   
   
3. Decide on who is going to work in it
   
   
4. What funding will be needed?
   • where will it come from?