Founders and shareholders agreement: what should be settled early?
Before launching a joint business, it is useful to put ownership, decision-making, investment, roles and exit mechanisms in writing.
← All articlesBefore launching a joint business, it is useful to put ownership, decision-making, investment, roles and exit mechanisms in writing.
Ownership, investment and roles
Set out equity percentages, initial investment, possible future funding commitments, founder roles and what each person is expected to contribute to day-to-day operations.
Decision-making
Define which decisions require an ordinary majority, which require a special majority and what happens when a disagreement creates a management deadlock.
IP, confidentiality and restrictions
Consider who owns code, branding, documents, databases and other assets created for the business, together with confidentiality duties and appropriate restrictions.
Exit, transfers and disputes
Share transfer rules, founder departures, sale mechanisms, rights of first refusal, deadlock provisions and dispute-resolution terms can reduce uncertainty when relationships change.