What is a Founder's Agreement?

A founder's agreement is usually referred to as shareholder's agreement, is a written document that deals in cases such as relative split of the equity among the founders of the firm, also the fact that how long the founders will have to remain with the firm for their shares to fully vest. Thus it extends the role and responsibilities of the founding members of a company, the equity vested in them etc. Founder's agreement covers various aspects that the founders undertake.

Advantages of Founder's Agreement?

Clarity: with the founder's agreement there arrives a clarity between the founders. There are certain matters which are not discussed between the co- founders. Thus, this agreement provides clarity of doubts, decisions and terms.

Segregation: the roles and duties are clearly segregated and defined through founder's agreement.

Procedure of Founder's Agreement?

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