Founders Agreement Or Co-Founders Agreement

The founder or co-founder agreement is a type of agreement where the co-founders of the company come together for a startup and this is the initial stage where they think of building a company, and at this initial stage they enter into an agreement which specifies the professional relation between the founders.

Below are the pointers that must be present in the above mentioned agreement :- 

Business definition

• The structure that need to be adopted in the future 
• Ownership defining the Intellectual property right that is Patent, Copyright, Trademark etc
• Parties stake ownership in the business 
• The key role and responsibilities of the parties to the business 
• Decision making mechanism
• Voting mechanism
• Hiring and firing criteria of parties
• Performance criteria of parties
• The rights of the parties to exist 
• Dispute resolution formulation

In India there are different laws that governs the terms and condition of the Founder’s agreement are mentioned below:-

• Arbitration and Conciliation Act, 1996
• The Indian Contract Act,1872
• Companies Act,2013
• The Indian Partnership Act, 1932
• LLP Act, 2008 Limited Liability Partnership Act, 2008