Document background
The Founder Stock Restriction Agreement is a critical document used when establishing or restructuring ownership arrangements in UAE companies, particularly for startups and growing businesses. This agreement becomes essential when companies need to ensure founder commitment, protect intellectual property, and maintain stable ownership structures during crucial growth phases. The document typically includes detailed vesting schedules, transfer restrictions, and repurchase rights, all aligned with UAE corporate law requirements and market practices. It serves as a fundamental tool for risk management and corporate governance, helping prevent potential ownership disputes while ensuring founders remain committed to the company's long-term success. The agreement must comply with UAE Federal Law No. 32 of 2021 and relevant free zone regulations where applicable.
