Question
What are common practices to limit a co-founder's ability to sell their share of the company? Can this be written down so that a board approval is necessary or similar? Could we agree on specific conditions or cases in which a sale would be possible, but exclude it for other situations? What are the usual clauses? Thank you for any insight.
Answers: 1 public & 0 private
The best way to do this would be to give the co-founders restricted stock that vests over time. Then have that tied to an employment agreement that spells out their responsibilities. You should also create a right of first refusal for all the co-founders so they have an option to buy the shares at the same price a third-party is willing to pay for them
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