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by Undo Capital
December 15, 2025
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What are Leaver Provisions?

Leaver provisions are contractual rules that determine what happens to a person’s shares or options when they leave a company.

Leaver Provisions Meaning

The leaver provisions' meaning centres on fairness, protection and continuity. To define leaver provisions in practice, these clauses classify departing founders, employees or shareholders as good leavers or bad leavers, with different outcomes for their equity. A clear leaver provisions definition sets out whether shares or options are retained, forfeited, or sold back to the company, and at what price. These rules are commonly included in shareholders’ agreements and option plans to protect long-term value while ensuring fair treatment when someone exits the business.

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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.