What should be included in a founders' agreement?

Corporate Legal Consultancy

A founders' agreement should record ownership, responsibilities, contributions, decision rules, intellectual-property ownership and what happens if a founder leaves or fails to perform agreed obligations.

Core provisions

  • founder equity
  • capital contributions
  • future funding
  • roles and responsibilities
  • time commitments
  • voting
  • reserved matters
  • salaries or compensation
  • IP ownership
  • confidentiality
  • founder departure
  • transfer restrictions
  • deadlock
  • dispute resolution

A founders' agreement should be coordinated with the company's Memorandum and Articles so the documents do not conflict.

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