Founder’s Agreement

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Founder’s Agreement

A founders’ agreement outlines the various roles and responsibilities of the founding members of a company, the equity vested in them, the ownership of intellectual property created by them and their roles and responsibilities. It is a broad agreement covering various aspects of the endeavour that the founders are about to undertake, including the consequences of their departure or death.

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Advantages of a Founders’ Agreement

Clears the Air

Many matters tend to go un-discussed between co-founders. This agreement gives the early team members the opportunity to discuss these matters, clearing any doubts and allowing for a better relationship.

Defines Roles

This gives members the opportunity to clarify their role in the company and also gives every founding member a good understanding of what the other founding members do.