Document background
A Founder Shareholder Agreement is essential when establishing a new company or formalizing arrangements between existing founders. Under English and Welsh law, this agreement serves as the cornerstone document defining the rights, obligations, and relationships between founding shareholders. It typically includes provisions for share ownership, voting rights, board composition, and business operations. The agreement is particularly crucial for protecting founders' interests, ensuring clear decision-making processes, and establishing mechanisms for resolving potential disputes. It should be put in place as early as possible in the company's lifecycle to provide clarity and certainty for all parties involved.
