Question

Most founders' agreements include a buyback clause, which legally obligates the departing founder to sell to the remaining founders his or her interest in the firm if the remaining founders are interested. Yes or no?

Answer 1

Answer:

Yes

Explanation:

This type of agreements are generally signed in order to protect the foundling members of a business that decide to continue working. Generally, founding members have a large participation in the business or even have certain special stocks that grant them higher voting power. In order for the remaining founders to be able to keep managing the company, they sign this type of agreements so that other external investors do not replace them.