Governance
The rules and structures by which decisions get made and the company is held accountable.
Example
Which decisions need board approval, how shares are transferred, how conflicts are handled.
Important
Boring until it is the only thing that matters — usually during a raise, a co-founder departure or an acquisition.
Related terms
- Board of directors — The group legally responsible for overseeing the company on behalf of shareholders.
- Shareholders agreement — The contract between shareholders covering transfers, decisions requiring consent, and exit rights.
- Board seat — A place on the company's board of directors, which oversees the company and can hire or fire the CEO.
Lessons that explain it
- Legal structures and incorporation — Educational, not advice. What the main structures are, why only some can take investment, and when to talk to a professional. (12 min)
- The contracts you will actually need — Founders agreement, employment and contractor agreements, customer terms, privacy policy, NDAs. What each is for, and which ones matter. (12 min)
- When to talk to a lawyer or accountant — Which situations genuinely need a professional, which do not, and how to spend the least money getting the most protection. (10 min)
- What an IPO actually is — Advanced and far away. A financing event that turns your company into a public one, with everything that entails. (10 min)
- Decision fatigue and reversible decisions — Most decisions are reversible and deserve minutes. A few are not and deserve weeks. Treating them the same is exhausting and slow. (10 min)
- Your job changes as you grow — The thing you were good at stops being your job. Founders who do not notice become the bottleneck they built. (10 min)
All 176 terms in the Founder glossary