What is a founders’ agreement? Posted on November 3, 2014

A founders’ agreement is an agreement between the partners and the founders, whose purpose is to clarify and settle questions such as the identity of the partners, the business’ capital structure, scope of work, the manner of adoption of resolutions and the right to adopt such resolutions, investment in the business, returns on investment, ownership in the company’s intellectual property and more. An additional topic covered in a founders’ agreement is the matter of dissolution of the partnership and liquidation of the business. In the event you are planning on establishing a business or to invest in an enterprise, we recommend approaching an attorney specializing in contract and commercial law.

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