Document background
The Founders Contract is a crucial legal document used when establishing a new company in the Philippines, typically implemented during the initial stages of company formation or formalization of a business relationship between co-founders. This agreement is essential for clearly defining the rights, responsibilities, and expectations of all founding members, while ensuring compliance with Philippine corporate law, particularly the Revised Corporation Code. The document addresses critical aspects such as equity distribution, intellectual property rights, decision-making processes, and exit strategies, serving as a preventive measure against future disputes and misunderstandings. A well-structured Founders Contract is particularly important in the Philippine context, where specific requirements regarding foreign ownership, corporate governance, and securities regulations must be carefully considered and incorporated into the founding documents.
