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A Founders' Agreement is an official contract that is signed between all the co-founders of a firm. This document states all the responsibilities, ownership, and initial investments made by each of the founders of the company. It is advised to make a founders' agreement at the incorporation stage of an enterprise as it will lay out the responsibilities and roles of each of the co-founders.
Mainly, an agreement is made at the time of the incorporation to avoid ambiguity that may arise in the enterprise in future. It also sets up the expectations and goals of all the co-founders by assigning each of them a specific role and responsibility towards the betterment of the enterprise.
Founders' agreement is always better to be in a written format than being an oral contract. It is also important that it is to be drafted with the help of a legal team, which ensures elimination of all the loopholes that can be exploited.
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Now, let us look at the essentials that are a must in any founders' agreement. They are:
Stated below are some of benefits of Founders' Agreement:
Following are the documents and details required for Founders' Agreement:
The procedure for drafting the founders' agreement involves the following steps:
Some of the best reasons to choose us are:
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3. Strong Legal Team: Our team of experienced legal and business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.
The founder's agreement will restrict co-founders from engaging with other employment opportunities, even if they are relieved or ousted from the company.
Yes, the founder's agreement has to be executed on non-judicial stamp paper for respective value and get notarized from the notary person, in order to make the agreement a legally enforceable one.
Yes, but it depends on the severity of the dispute! For example, the shares of the co-founder will be vested with the company if he violates or breaches the agreement.
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