Fauri Law

Fauri Law is a corporate law firm that combines diverse corporate law experience and practical business perspective with sound judgment.

[Fauri Law @FauriLaw]

A question we get often: at what point does a startup need real corporate legal infrastructure, and what should be in place?

The honest answer is that there's a stack — six things, in roughly this order — that most well-run Canadian startups have in place by month six:

A clean incorporation, with the right share structure for the founders and for the equity they'll issue later.

A founders' agreement that addresses ownership, decisions, departure, IP, and disputes.

Founder IP assignments confirming everything the founders have built belongs to the company.

Signed board and shareholder approvals for every share issued, every option promised, every material decision taken.

A minute book that's current, not "to be cleaned up later."

A cap table that reconciles to the documents, not a separate spreadsheet that drifts from them.

None of this is the work that founders enjoy. All of it is the work that compounds
— quietly when it's done, expensively when it isn't.

A longer piece on the full stack and how to think about each layer: https://t.co/dQkbLy8Cq2

[Khaled El Fauri @FauriKhaled]

Three things that should be in writing before a startup hires its first employee:

One. Who owns the IP the founders have already created.

Two. What happens to a founder's shares if they leave in month seven.

Three. Who decides — and how — when the founders disagree.

None of these become easier to document later. All of them become more expensive.

We work with founders on this through a structured founder setup process — https://t.co/qS0K7iZGip.

[Fauri Law @FauriLaw]

Founder equity is often misunderstood because the cap table shows what was issued, not always what has been earned.

Vesting, restricted shares, repurchase rights, and acceleration terms can materially change ownership outcomes.

Fauri Law's principal lawyer breaks it down here.

[Khaled El Fauri @FauriKhaled]

https://t.co/6Upxjw1Fk2

[Fauri Law @FauriLaw]

Headline valuations do not tell the full dilution story.

SAFEs, convertible notes, valuation caps, discounts, interest, and stacked instruments can materially change founder ownership by the time a priced round closes.

In our latest insight, we break down how conversion mechanics actually dilute ownership:

https://t.co/UbvHpfJjAS

#StartupLaw #VentureCapital #FounderEquity #CorporateLaw

[Fauri Law @FauriLaw]

A cap table may show ownership — but vesting determines what founders actually keep.

Restricted shares can create the illusion of ownership if unvested equity remains subject to repurchase, forfeiture, or departure terms.

We break down what founders should understand before treating issued shares as earned equity:

https://t.co/NHGNT5smr7

#StartupLaw #FounderEquity #VentureCapital #CorporateLaw

[Fauri Law @FauriLaw]

https://t.co/8q5gn5wdn2

[Fauri Law @FauriLaw]

https://t.co/vJmyHAZZxq

[Fauri Law @FauriLaw]

https://t.co/vJmyHAZZxq

[Fauri Law @FauriLaw]

Join Our Team as a Corporate Commercial Lawyer in Toronto at Fauri Law!
#Hiring #CorporateLawyer #RemoteWork #LegalJobs #VentureCapital #IPLaw #CorporateLaw

[Fauri Law @FauriLaw]

Fauri Law represented a Canadian AI startup in securing CA$5 million in funding, achieving a CA$20 million post-money valuation! This milestone paves the way for expansion into new geographical locations and involvement in multi-billion dollar real estate projects.

[Fauri Law @FauriLaw]

🇨🇦 Happy Canada Day from Fauri Law! 🎉🍁

Celebrating the incredible nation of Canada and its rich heritage. Grateful to be part of this remarkable country. #CanadaDay #ProudToBeCanadian ❤️
Committed to serving our clients with integrity and expertise. Happy Canada Day to all!🍁

[Fauri Law @FauriLaw]

Are you ready to turn your business idea into a reality, but feeling overwhelmed by all the legal jargon and choices? Our latest article is your ultimate guide to choosing the right legal structure for your Canadian business. https://t.co/n4FqAyGL7p

[Fauri Law @FauriLaw]

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[Fauri Law @FauriLaw]

Minority shareholders are often at a disadvantage in a company, as they have limited control over the company's decisions and operations. To protect the interests of minority shareholders in a shareholder agreement (SHA), the following steps can be taken: (1/9)

[Fauri Law @FauriLaw]

7. Dispute resolution mechanism: The SHA should include a dispute resolution mechanism, such as arbitration or mediation, to help resolve any disputes between the shareholders. This can help to prevent disputes from escalating into costly and time-consuming legal battles.