oboloo Glossary

Founders Contract

oboloo Glossary

Founders Contract

A Founders Contract is a legally binding agreement that establishes the relationships and expectations of all the founders of a company. It typically outlines the percentage of ownership each founder holds, how decisions will be made, how disputes between founders will be settled, and what happens if one or more founders leave or are removed from their positions. This contract also specifies the obligations of each founder and how they should conduct themselves as well as any areas where they must seek approval. With a Founders Contract, founders can clearly set out expectations to ensure everyone involved remains accountable and works towards the same goal.