Document background
The Founder Stock Purchase Agreement is a foundational document used during company formation or early-stage operations in Canada. It is essential when founders are acquiring their initial equity stake in the company or formalizing existing share arrangements. The agreement ensures compliance with Canadian federal and provincial corporate and securities laws while protecting both the company's and founders' interests. The document typically includes detailed terms about share acquisition, vesting schedules, transfer restrictions, and founder obligations. It's particularly crucial for startups and early-stage companies as it helps establish clear ownership structures and prevents future disputes. The agreement must align with the Canada Business Corporations Act or provincial corporate statutes, and may need to address specific requirements for Canadian Controlled Private Corporations (CCPCs) for tax purposes.
