Founders Agreement
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What is Founders Agreement?
A Founders Agreement is a crucial legal document that defines the relationship between the founders of a startup or business. It outlines each founder’s roles, responsibilities, ownership structure, and expectations — helping to prevent disputes and ensure smooth business operations.
Why You Need a Founders Agreement
Starting a business with partners is exciting, but misunderstandings about ownership, control, or contributions can quickly lead to conflicts. A well-drafted Founders Agreement provides:
• Clarity on each founder’s equity share, capital contribution, and role.
• Protection in case a founder leaves or new investors come in.
• Transparency on decision-making, profit-sharing, and dispute resolution.
• Legal structure that aligns with long-term business goals and funding plans.
Deliverables
- Customized Founders Agreement drafted to reflect your startup’s structure, business goals, and founder roles.
- Equity and ownership framework clearly defining shareholding, vesting schedules, and capital contributions.
- Governance structure detailing decision-making powers, voting rights, and board representation.
- Exit and dissolution clauses to manage founder departures, buyouts, or company winding-up scenarios.
- Confidentiality and IP ownership provisions to protect the startup’s core ideas and assets.
- Dispute resolution mechanism ensuring smooth handling of disagreements among founders.
- Final legal review and consultation session with senior corporate lawyers to explain all clauses and ensure mutual understanding.
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