Shareholders Agreement, Technology Transfer

A Shareholders Agreement, also known as a Founders Agreement, is a contract among founders of a company to regulate their rights as shareholders of the company. The founders agree on a set of rules for the future transfer of shares and the level of consent required for making major decisions.

The Agreement protects founders of a business by imposing restrictions on the transfer of issued shares, so that when one founder leaves, the sale of his shares is subject to other founders consent or the remaining founders have the chance to buy his shares before someone outside the company does.