As a startup founder, what reasonable bylaws are commonly setup to maintain control of the board?

Question

As a startup founder, what reasonable bylaws are commonly setup to maintain control of the board?

This is to prevent hostile take overs, transfer of assets and etc.

Answer 1

Your outside investors, particularly if they are professionals, will likely demand all the control they think they need to protect their interests. If you want to retain control of the board you will either need your investors to be friends and family, very naive, or wait until you are very successful to take in outside money.

Answer 2

The ‘Golden Rule’ applies

The ‘Golden Rule’ goes like this - the person with the gold makes the rules. If you want them to invest, you have to agree to their conditions.

That said, the agreement is usually independent of the company’s constitution - it is usually a separate contract commonly referred to as a shareholder’s agreement.