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Business Ownership Agreement
"I need a Business Ownership Agreement for my new tech startup with three co-founders, where we'll have different equity stakes (51%, 29%, 20%) and specific provisions for future investor buy-in opportunities starting January 2025."
1. Parties: Identification and details of all business owners and stakeholders
2. Background: Context of the business relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including interpretation provisions
4. Business Structure: Legal form of the business and ownership structure
5. Capital Contributions: Initial and ongoing financial commitments of each owner
6. Management Rights: Decision-making processes, authority levels, and voting rights
7. Profit Distribution: Method and timing of profit sharing between owners
8. Transfer Restrictions: Rules regarding sale or transfer of ownership interests
9. Exit Provisions: Procedures for owner withdrawal, retirement, or termination
10. Dispute Resolution: Procedures for resolving disagreements between owners
1. Non-Compete Provisions: Restrictions on owners engaging in competitive activities during and after ownership
2. Intellectual Property Rights: Ownership and use of intellectual property developed by or for the business
3. Death/Incapacity Provisions: Succession planning and procedures in case of death or incapacity of owners
4. Tag-Along/Drag-Along Rights: Special provisions for share sales in larger ownership structures
5. Confidentiality: Obligations regarding confidential information and trade secrets
1. Schedule 1 - Share Capital Table: Detailed breakdown of ownership percentages and share classes
2. Schedule 2 - Business Plan: Initial business strategy and financial projections
3. Schedule 3 - Asset Register: Comprehensive list of business assets and their ownership status
4. Schedule 4 - Deed of Adherence: Template document for new owners joining the business
5. Schedule 5 - Reserved Matters: List of decisions requiring special majority or unanimous approval
Authors
Articles of Association
Board
Business
Business Day
Business Plan
Capital Contribution
Company
Completion
Confidential Information
Directors
Effective Date
Encumbrance
Fair Market Value
Financial Year
Good Leaver
Bad Leaver
Intellectual Property Rights
Law
Management Board
Material Breach
Member
Ordinary Shares
Owner
Party/Parties
Permitted Transfer
Reserved Matters
Share Capital
Shareholder
Share Transfer
Tag-Along Rights
Drag-Along Rights
Territory
Transfer Notice
Valuation
Working Capital
Capital Contributions
Management and Control
Voting Rights
Board Composition
Decision Making
Reserved Matters
Profit Distribution
Dividend Policy
Transfer Restrictions
Pre-emption Rights
Tag-Along Rights
Drag-Along Rights
Share Valuation
Exit Provisions
Death and Incapacity
Confidentiality
Non-Competition
Non-Solicitation
Intellectual Property Rights
Financial Reporting
Information Rights
Dispute Resolution
Deadlock Provisions
Good/Bad Leaver Provisions
Business Plan and Strategy
Amendment Procedures
Termination
Force Majeure
Notices
Assignment
Severability
Entire Agreement
Governing Law
Jurisdiction
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