Articles of Incorporation
Your corporate foundation document sets rules that are hard to undo later.
Articles of Incorporation establish the legal structure of your company. Errors or unfavourable provisions at formation can limit shareholder rights, concentrate power, or create governance problems that are expensive to fix years later.
What the report finds
Risks that can be hidden in this document
Overpowered single director
No checks on director authority — single person can take major corporate actions without shareholder approval.
Narrow purpose clause
A restrictive purpose clause can prevent pivoting the business without costly amendments.
Super-voting share class
Founders retaining disproportionate voting rights can prevent investors from having meaningful governance input.
Hard amendment process
Requiring 80%+ approval for amendments can deadlock governance when shareholders disagree.
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