Founders’ Agreement
A founder’s agreement is list of points & agreement signed by all co-founders of a startup. This agreement states the duties & responsibility of founders, proposed investment amount & timelines, Ownership & Company Structure of the Startup.
Essentials of a Founder's Agreement
The essentials of a founder’s agreement are as follows:
- Company Structure.
- Details of business proposed.
- Capital contributor by founders.
- Ownership details.
- Roles & Responsibilities.
- Compensation & Payout to founders.
- Exit Formalities.
- Winding Procedures.
- Arbitration Procedures.
Written or oral founder's agreement
The founder’s agreement may either
- Written format
- Oral format
It is suggested to have a written agreement between the founders.
