Founder disputes are one of the most common reasons promising businesses fail. In Nigeria’s fast-growing entrepreneurial ecosystem, many startups and founder-led companies begin operations without properly documenting ownership, roles, or exit expectations. While this may seem harmless in the early stages, it often leads to serious legal and commercial problems later.
A founder agreement is a legal document that sets out the relationship between business founders. It defines equity ownership, decision-making authority, roles and responsibilities, vesting arrangements, and dispute resolution mechanisms. Proper equity structuring ensures that ownership aligns with contribution, risk, and long-term commitment.
