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This Agreement is entered into between the founders of a company, wherein the relationship between the co founders are agreed upon.
You need it when you are about to start a venture and need to define the ownership, roles and responsibilities of every co-founder, decision making powers, procedure as to
admitting of a new partner, circumstances in which a founder can be disqualified, conflict resolution method among them, non compete clause, compensation or salary that the
founders will draw. The repayment of loan from founders to keep the business running, and authority within the company to enter into contracts or sign cheques are also clearly
defined,thus it prevents any disputes between the co founders.
This document can be made legally enforceable by printing it on non- judicial Stamp paper duly signed by the concerned parties with the appropriate stamp duty varying with different states.
Use this agreement if
You want to start any business with other founders.
You want to define the roles and responsibilities of every founder.
You want to avoid confusion for effective decision making.
Users who create Co-Founders' Agreement often require the following list of additional agreements.